Egypt has asked suppliers of Liquefied Natural Gas (LNG) to delay deliveries scheduled for the rest of the year as domestic demand remains lower than expected.
The decision affects at least 20 shipments initially planned for arrival between October and December 2025.
As part of the actions confirmed by officials familiar with the matter, State owned Egyptian Natural Gas Holding Company (EGAS) has contacted suppliers to defer the affected cargoes until the first quarter of 2026.
The suppliers have been informed that the rescheduled shipments will be accommodated once Egypt reassesses its energy requirements.
According to people with knowledge of the discussions, the request followed a period of reduced consumption from power plants and industrial users.
They added that some import contracts had flexibility clauses that allowed Egypt to postpone deliveries without penalties.
The Ministry of Petroleum and Mineral Resources has yet to issue a public statement on the decision.
Drop in local demand pressures import plans
Egypt, which became a net importer of LNG in 2024 after years of exporting gas to Europe and Asia, has faced a sharp shift in its energy balance.
The country’s return to importing has cost billions of dollars in lost export revenue, straining foreign exchange reserves already under pressure from high import bills.
In the first half of 2025, Egypt purchased an unusually large volume of LNG cargoes to meet projected demand from power plants and households.
However, the decline in actual consumption prompted the government to reconsider its import schedule.
Gas demand has been unstable since mid 2024 due to fluctuating temperatures, slower industrial activity, and government efforts to control energy use.
The current delays are therefore aimed at preventing an oversupply that could lead to storage and payment challenges.
Impact on global LNG market
The deferral of shipments from Egypt could free up supply for other buyers, particularly in Europe, where LNG demand remains strong.
Traders said this additional supply could ease tightness in the global market and help stabilise LNG prices in the short term.
Egypt’s adjustment also signals that its domestic gas sector is still struggling to balance imports and local output.
In recent years, declining production from key gas fields such as Zohr and Atoll has forced the government to rely more on imported LNG to meet demand during peak seasons.
Meanwhile, the delays are expected to continue until the first quarter of 2026, when the country plans to re evaluate its gas import needs.
Officials believe the measure will provide temporary relief to state finances while ensuring adequate energy supply for domestic use.
