EGYPT RACES TO PLUG ENERGY GAP WITH $3B LNG SPLURGE

The government is negotiating the import of up to 60 liquefied natural gas (LNG) shipments at a potential cost of USD 3 billion to keep its power grid afloat.

Egypt Lng Gas production Power grid Electricity stability.
Liquefied Natural Gas (LNG)
Liquefied Natural Gas (LNG)



Egypt is launching a last-minute dash to secure emergency energy supplies as a steep decline in domestic gas production threatens to plunge the country into a summer of power outages.

With electricity demand set to soar, the government is negotiating the import of up to 60 liquefied natural gas (LNG) shipments at a potential cost of USD 3 billion to keep its power grid afloat. The move comes amid growing public concern over a repeat of last year’s outages, which left homes and businesses sweltering in the heat.

President Abdel Fattah El-Sisi has called for swift action, instructing officials to safeguard electricity stability at all costs. 

In addition to LNG, Egypt is considering importing around 1 million tons of fuel oil. However, LNG is preferred due to easier financing terms in a time of deepening economic stress. 

The country has already secured 1.84 million tons of LNG this year, about 75 percent of its total forecasted import volume for 2024, according to S&P Global Commodity Insights.

Talks are ongoing with energy heavyweights like Qatar, Algeria, and Saudi Arabia, as well as major international traders. But there’s a looming complication: gas imports from Israel, which supply up to 60 percent of Egypt’s needs, have been disrupted by maintenance issues, tightening the energy squeeze further.

As temperatures rise, so does the pressure on Cairo to avoid an energy disaster. The coming weeks could determine whether Egypt weathers the heat or buckles under it.

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