Egypt examines LNG supply offers from Saudi Aramco, UAE’s Adnoc, Algeria’s Sonatrach, and QatarEnergy

Egypt's state-owned gas company EGAS has received several offers to supply liquefied natural gas (LNG) shipments urgently needed for summer, Al Sharq reported on May 18, citing an unnamed government official. 

In summer 2024, Egypt suffered extended power cuts due to insufficient gas supplies. 

Saudi Aramco, UAE’s Adnoc, Algeria’s Sonatrach, and QatarEnergy submitted offers. EGAS is currently reviewing technical and financial proposals.

Egypt has set conditions for receiving LNG import offers for the summer, including a price cap of $14/mn British thermal units (MMBtu). A letter of credit should be used to advance 25% of the shipment’s value before arrival at Ain Sokhna Port. The remaining 75% should be paid after the gas enters the national grid.

The government official noted that Egypt will bear an additional cost of around $2 per MMBtu over the spot price.

Due to declining domestic production, Egypt is in talks to secure gas imports until 2030. The country signed a $3bn deal with Shell (UK) and TotalEnergies (France) to purchase 60 LNG shipments in 2025 with a one-year deferred payment plan for each shipment.

Under this agreement, Egypt will receive about five shipments per month, each containing 160,000–165,000 cubic metres of LNG. The country aims to import between 155 and 160 LNG shipments in 2025 to cover the shortfall in domestic gas supply and demand. 

Egypt’s daily natural gas consumption is 6.2bn cubic feet (175.6mn cubic metres) while domestic production has dropped to around 4.1bn cubic feet. Demand is expected to rise to 7bn cubic feet per day in summer.