Egypt Plans Import Up To 60 LNG Cargoes Amid Energy Crunch

Egypt is negotiating with international energy firms and trading houses to import 40 to 60 cargoes of liquefied natural gas (LNG) in preparation for peak summer demand, potentially spending up to $3 billion despite financial strains. The country’s domestic gas output has fallen to its lowest level in nine years, turning Egypt into a net importer of natural gas and forcing it to abandon plans to supply Europe. President Abdel Fattah al-Sisi has directed the government to ensure stable electricity flow amid ongoing rolling blackouts and energy shortages. Discussions include suppliers such as Qatar, Algeria, Saudi Aramco, and major global trading houses, with the government also considering importing around 1 million tons of fuel oil if LNG prices become unfavorable. Egypt’s energy crisis is exacerbated by reduced supply from Israel’s Leviathan gas field, on which it heavily relies, with potential price increases impacting import costs. The shortage and financial crisis have slowed domestic oil and gas production due to delayed payments to foreign companies, further deepening the energy crunch.