Egypt is seeking to secure up to 60 cargoes of liquefied natural gas (LNG) amid an escalating energy crisis that threatens to worsen during the peak summer months, sources familiar with the matter have said.
The North African country, already grappling with reduced gas production and a currency crunch, may spend as much as $3 billion to avert prolonged electricity outages.
Three industry sources told Reuters that the Egyptian government is in active talks with major energy producers and global trading houses to arrange the imports.
The discussions come as domestic gas output continues to decline and public pressure mounts over recurring blackouts.
One source explained that Cairo is prioritising LNG imports due to more flexible payment arrangements compared to fuel oil, though the latter remains under consideration.
The government is also reportedly eyeing the purchase of around 1 million tonnes of fuel oil.
“The government is now in talks to import at least 40 LNG cargoes and around 1 million tons of fuel oil,” the source said. “Gas was the primary focus, given the more flexible payment options available compared to fuel oil, though the latter remains under consideration if LNG prices are unfavourable,” he added.
Egypt’s reliance on imported gas has increased significantly since it returned to being a net importer last year, abandoning its ambitions to become a key energy supplier to Europe.
Its February gas production fell to its lowest level in nine years, intensifying the supply crunch.
According to a second trading source, Egypt may require as many as 60 LNG cargoes to meet demand through 2025.
“If production levels don’t recover, the requirement could rise to as high as 150 cargoes in the longer term,” the source noted.
Data from S&P Global Commodity Insights reveals that Egypt has already purchased 1.84 million tonnes of LNG in 2024 nearly 75% of its expected annual imports.
However, sources confirmed that talks are ongoing with Qatar, Algeria, Saudi Aramco, and major international energy traders.
President Abdel Fattah al-Sisi has reportedly directed the government to “preemptively take whatever steps necessary to ensure stable electricity flow,” according to a statement issued Wednesday.
Adding to Egypt’s challenges is the reduced gas supply from Israel’s offshore Leviathan field. A scheduled maintenance operation has limited exports to Egypt, forcing authorities to curtail gas supply to several domestic industries.
