Egypt to launch $3.75bn tender for 75 additional LNG shipments

Egypt is preparing to launch a major international tender in March 2026 to import 75 additional shipments of Liquefied Natural Gas (LNG), Asharq Business reported on February 16, citing a government official. 

The move aims to address the growing energy gap between domestic production and the soaring national demand. Deliveries are scheduled to commence in April, according to the official. 

The procurement, valued at roughly $3.75bn, comes as a direct response to increased requirements from the electricity ministry to fuel power plants during the upcoming peak summer season. The petroleum ministry has outlined specific financial conditions for international bidders to manage liquidity. 

Under the proposed terms, the government seeks to defer the full payment of shipments for at least six months from the date of import. Furthermore, a letter of credit covering 25% of the shipment's value must be opened as soon as the vessel enters Egyptian territorial waters. The government has capped the average price at approximately $50mn per shipment.

The state’s energy plan was originally limited to a tender for 100 shipments. However, the anticipated surge in electricity consumption has forced authorities to expand the target by an additional 75 cargoes. 

Egypt needs to ensure grid stability and prevent power outages during the hottest months of the year, even as it navigates the fiscal challenge of financing high-volume energy imports on the global market.

Egypt’s gas shortage is primarily driven by a sharp decline in domestic production at major fields like Zohr due to technical issues and water infiltration, which saw output fall by nearly 25% over the past two years. The supply drop coincides with record-breaking electricity demand during intense summer heatwaves, forcing the government to divert potential exports to local power plants. In addition, unpaid debts to international energy partners slowed down new exploration investments, turning Egypt from a net exporter into a significant importer of global LNG.