THIS EVENING: Egypt considers leasing gasification unit to bolster gas supply prior to summer season

Good afternoon, folks, and happy Thursday. The news cycle is picking up as we approach the final weekend of Ramadan and the eventual Eid holiday.

** So, when do we eat? Maghrib prayers are at 6:16 pm in the capital city, and you’ll have until 4:10 am tomorrow to hydrate and caffeinate ahead of fajr.

THE BIG STORY TODAY

Egypt is moving to lease a gasification unit to be docked at the Gulf of Suez as it aims to secure more gas supplies ahead of summer, a government source told Enterprise this morning.

Egypt has imported at least two LNG shipments that will be regasified in Jordan’s Aqaba to be delivered next month, the source added, confirming a Bloomberg report that cited what it said are traders with knowledge of the matter.

The rationale: Natural gas is currently at favorable prices globally after the winter season ended in Europe. Egypt is planning to stock in more shipments before summer, the source explained.

Remember: Egypt had bid farewell to the era of leasing floating storage regasification units (FSRU) years ago when it ended a contract with the Norwegian Höegh Gallant in 2018 as the government pulled the plug on gas imports following the discovery of Zohr field, which has allowed Egypt to re-emerge again as a natural gas export hub.

The shift in course happens as the government decided last summer to ration natural gas consumption amid a decline in local production. The move saw the Madbouly government introduce power outages that are expected to be resumed after Eid Al Fitr break, a source in the electricity sector told Enterprise yesterday.

THE BIG STORY ABROAD

There’s no single story leading the conversation in the international business press this afternoon, but a big point of focus is Benny Gantz’s call for early elections in Israel. A member of Israel’s war cabinet, Gantz’s proposal mounts pressure on Prime Minister Benjamin Netanyahu as domestic protests swell alongside international criticism over Israel’s attack on Gaza. Gantz suggested holding the polls in September instead of the scheduled 2026, saying it was necessary to confront upcoming challenges and to seek the trust of the Israeli populace. (Bloomberg)

** CATCH UP QUICK on the top stories from today’s EnterpriseAM:

• FX inflows push net foreign reserves to highest level in two years: Net foreign reserves rose by over USD 5 bn to their highest level since Russia’s war on Ukraine triggered the flight of hot money from EMs back in February 2022. Reserves increased to USD 40.36 bn at the end of March, compared to USD 35.31 in February.
• Business activity was more or less unfazed by the bigger IMF package, wave of reforms in March: Egypt’s non-oil private sector activity saw a “softer but still-solid deterioration” in March due to persistent currency challenges and elevated inflationary pressures.
• Pharma industry sets the wheels in motion on potential price hikes: The Egyptian Drug Authority (EDA) is studying a number of requests and proposals for new med pricing schemes put forward by local pharma companies.

?️ TOMORROW’S WEATHER- Expect a partly sunny day with the mercury hitting a high of 32°C and a low of 17°C, according to our favorite weather app.