Egypt studies new LNG terminal plans in Port Said

Egypt’s Ministry of Petroleum and Mineral Resources is studying proposals for a new liquefied natural gas (LNG) terminal in Port Said, industry sources told Daily News Egypt on October 20. The initiative forms part of Cairo’s plan to expand gas-export infrastructure and reinforce its role as a regional energy hub.

The sources said feasibility studies are underway covering site selection, demand forecasts, and financing options.  No official cost estimate, capacity figure, or completion timeline has yet been disclosed.

The proposed facility would supplement Egypt’s two existing Mediterranean export plants — Idku (7.2 mn tpa) and Damietta (5 mn tpa) — both of which have faced intermittent shutdowns due to feed-gas shortages and maintenance.

The Port Said site could provide an additional outlet near the northern entrance of the Suez Canal, giving Egypt direct access to both Mediterranean and Red Sea routes and improving flexibility for LNG carriers serving European and Asian markets.

The project aligns with Egypt’s Natural Gas Strategy 2040 and broader Energy Hub Vision, which aim to consolidate its position as a key member of the East Mediterranean Gas Forum (EMGF) and expand re-exports of regional gas.

Potential partners have not been named, but companies such as Egyptian Natural Gas Holding Company (EGAS), Eni (Italy), TotalEnergies (France), and Chevron (US) are already active in Egypt’s upstream and midstream gas sectors and could play technical or financial roles if the project advances.

The study coincides with rising European winter gas demand and efforts by Egypt to sustain LNG export volumes as domestic output has eased to about 6.1 bcf/d, down from 6.8 bcf/d in 2023, according to EGAS data.

The proposed Port Said terminal could strengthen Egypt’s competitiveness as one of the few African LNG exporters with direct Mediterranean access, alongside Algeria and Libya.