Egypt plans LNG imports worth up to $3bn ahead of summer demand

Egypt’s Ministry of Petroleum and Mineral Resources is studying a plan to import around 45 liquefied natural gas (LNG) cargoes at an estimated cost of between $2.5bn and $3bn, Al Arabiya Business reported on March 25, citing government sources. 

The move is part of a broader government drive to secure domestic energy supplies amid escalating geopolitical tensions in the Middle East. According to the sources, deliveries are expected to begin in June, coinciding with peak seasonal demand for gas used in conventional power generation.

The aim is to strengthen the flexibility of Egypt’s supply system and address rising consumption during summer. The government sources noted that the majority of the cargoes will be sourced from US and European markets. Egypt’s total LNG import needs in 2026 are projected to exceed 140 shipments.

International LNG prices have risen sharply in the first weeks of the ongoing US-Israel war with Iran, climbing from $12–14 per million British thermal units (MMBtu) to around $20, including shipping and regasification costs.

The regional tensions have caused Egypt's monthly gas import bill to nearly triple, from $560mn to $1.65bn, owing to supply disruptions and surging global prices, while Israel has halted most of its gas exports to Egypt. The government has raised domestic fuel prices by up to 22% and implemented mandatory electricity rationing, including earlier closing times for shops and cafes.

Earlier, the ministry announced a new gas discovery in the Western Desert. US energy major Apache (NASDAQ:APA), in partnership with the Egyptian General Petroleum Corporation, achieved the finding after drilling the SKAL-1X exploratory well in the South Kalabsha area. Initial tests indicate production of around 26mn cubic feet (mmcf) of gas per day, or 0.74mn cubic metres (mcm), and approximately 2,700 barrels of condensate, approximately 429 cubic metres.