Egypt eyes Algerian crude imports to secure summer energy supplies

Egypt’s Ministry of Petroleum and Mineral Resources is studying plans to import around 6mn barrels of crude oil from Algeria starting in July 2026,  as part of efforts to diversify supply sources and strengthen energy security, Al Arabiya Business quoted a government official on May 12. The agreement may also include cooperation in refining, marketing and joint investments.

The proposed arrangement would involve importing 2mn barrels per month, equivalent to around 65,000 to 70,000 barrels per day, with the possibility of increasing volumes later depending on domestic demand and refinery operating capacity. The source told Al Arabiya Business that the deal comes amid rising local fuel consumption during the summer months and increased demand from electricity generation plants.

The shipments are expected to be supplied through cooperation between the Egyptian General Petroleum Corporation (EGPC) and Algeria’s state-owned energy company Sonatrach, as both countries seek to expand collaboration in the oil and gas sector. Egypt is also reportedly seeking payment facilities allowing deferred settlement periods of up to 6 months under the framework of regional energy cooperation agreements.

Egypt’s strategy focuses on diversifying crude import sources and reducing reliance on a single supplier amid geopolitical volatility in global energy markets and continuing supply chain disruptions. Algerian crude offers a competitive advantage due to shorter transport distances and lower shipping costs compared with supplies from more distant markets.

Egypt currently produces around 510,000 to 525,000 barrels of crude oil per day, while domestic refineries require between 700,000 and 750,000 barrels daily, creating a supply gap that has increased reliance on imports.