Egypt has secured LNG deals worth approximately $3 billion with Shell and TotalEnergies securing 60 cargoes of liquefied natural gas (LNG) to meet the nation's growing demand in 2025, according to Reuters. The agreements are crucial as Egypt navigates a shift from being a net exporter to a net importer of natural gas.

These deals come at a pivotal time for Egypt, as the country aims to stabilize its energy market after a sharp decline in domestic gas production. Last year, Egypt, once a key supplier of natural gas to Europe, faced a reversal of fortune, with domestic output falling to a seven-year low.

In September 2024, Egypt’s natural gas production dropped sharply, primarily due to a decline in output from the Zohr gas field, once considered a major asset in the country’s energy sector. This drop, coupled with increasing demand for power due to a growing population and industrial development, led Egypt to abandon its ambitions of being a natural gas exporter to Europe, turning instead to LNG imports.

The Zohr field, discovered in 2015, was expected to help Egypt become a key supplier in the region, but production has been tapering off in recent years. Meanwhile, Egypt's domestic power consumption has surged, driven by industrial growth, urbanization, and a hot climate that increases electricity demand for cooling.

The contracts with Shell and TotalEnergies ensure that Egypt will have access to essential LNG shipments to cover most of its energy requirements for 2025. These shipments will help mitigate energy shortfalls and stabilize Egypt’s energy market.

Experts believe that securing long-term LNG contracts with major players like Shell and TotalEnergies will provide Egypt with a more predictable energy supply, which is crucial for the nation’s stability and economic growth in the coming years.