Egypt allocates $10.7bn for gas imports in FY 2026/27, up 26% y/y, as global prices grow

Egypt has earmarked around $10.7bn to secure its natural gas and liquefied natural gas (LNG) needs for FY 2026/27, which starts in July 2026, up 26% year-on-year (y/y), Asharq Business reported on April 28, citing a government official. 

The figure represents a sharp increase in natural gas needs driven by higher global energy prices and rising domestic demand. The measures are part of Egypt’s efforts to balance energy security needs with fiscal sustainability amid volatile global markets.

The official said the projected import bill marks a $2.2bn rise from the current fiscal year’s estimated $8.5bn. The higher allocation is attributed to escalating global prices influenced by geopolitical tensions, which have pushed the cost per LNG shipment from about $40mn to nearly $60mn.

Part of Egypt’s supply will come from eastern Mediterranean fields, including Tamar gas field and Leviathan gas field, where pricing is linked to international oil and gas benchmarks. Under its FY 2026/27 plan, Egypt aims to import nearly 18.7mn tonnes of gas to meet growing demand, estimated at around 7bn cubic feet per day (cfpd), equivalent to about 198mn cubic metres per day (mcmd).

Meanwhile, the Ministry of Finance expects recent fuel price increases to generate savings of about EGP 99.8bn ($1.89bn) in the upcoming fiscal year. The largest savings are projected from diesel, followed by household gas and butane cylinders, with additional gains from various petrol grades.

Egypt is facing a significant energy crisis and gas shortages directly driven by the ongoing war between the US-Israel alliance and Iran. The conflict has disrupted regional supply chains, blocked shipping routes, and forced Egypt to implement strict energy-saving measures. Following the strikes, Israel stopped the flow of natural gas to Egypt from the Tamar and Leviathan fields, removing about 1.1bn cfpd of supply. Recently, the gas flow has been recovering as peace talks continue. The war has nearly tripled Egypt's natural gas import bill, from $560mn to $1.65bn per month.