Egypt has reportedly set a pricing and payment mechanism for securing LNG supply agreements for the summer months, an unnamed government official told Asharq Business. Egyptian Natural Gas Holding Company (Egas) sent the conditions to global LNG suppliers in a bid to secure direct contract offers instead of issuing public tenders.

The conditions:

  • Price cap: Egypt will only consider LNG offers if the price does not exceed USD 14 per mn British thermal units (BTU);
  • Deferred payments: Suppliers must agree to a one-year grace period before receiving payments;
  • Overprice charges: Egypt will pay some USD 2 per mn BTU above the purchase spot for natural gas as a premium for securing deferred payment agreements;
  • Restricting suppliers: No Russian LNG imports are allowed due to EU sanctions.

Egypt aims to import 155-160 shipments of LNG in 2025 to close the gap between demand and supply, the official said. Egypt needs around 6.2 bn cubic feet per day (bcf/d), but domestic production only contributes 4.4 bcf/d.

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