Egypt is shifting from being a liquefied natural gas (LNG) exporter to a long-term importer due to declining domestic production and rising energy demand driven by a growing population, according to Bloomberg. To avoid power shortages, the country has secured infrastructure and import deals through 2028 and is negotiating long-term contracts with Qatar. This shift tightens the global LNG market and raises Egypt’s energy import bill, projected at $20 billion in 2025. While the government aims to stimulate domestic gas output and reduce arrears to energy companies, recovery may take years, leaving Egypt heavily reliant on expensive imports to meet its energy needs. They write:
Egypt is poised to boost liquefied natural gas purchases until the end of the decade, tightening the global market and raising the prospect of yet-higher import bills.
The nation is planning to buy LNG beyond the sizable volumes it’s already agreed to until 2028, as it looks to meet surging demand and fill a gap left by declining local output, according to people familiar with the situation. It has signed 10-year deals for import infrastructure and is in talks with Qatar over long-term gas supply contracts.
The plans signal Egypt is likely to miss a 2027 target for resuming exports, highlighting the dramatic reversal in energy fortunes that turned it into a net gas importer only recently. […]
Adapting to the new reality, Egypt agreed with giants including Saudi Aramco, Trafigura Group and Vitol Group to bring in as many as 290 LNG cargoes, running from July until 2028. It’s also in talks with Qatar over long-term deals. […]
“Cost is higher with these contracts,” said Wood Mackenzie’s Murphy. But getting a better deal could mean locking in Egypt’s status as an importer for a yet-longer period. “It will try to get longer-term deals to bring the prices down.”
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