LNG exports will once again begin flowing out of Egypt after the Madbouly government gave energy players the green light to resume exporting during the winter months, a government source told EnterpriseAM. Exports will be on hold starting April as the country starts gearing up for the heightened demand that accompanies the hot summer months.

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But why? Despite local gas output falling to a nine-year low in 2Q 2025, the Madbouly government believes the move to resume LNG exports will encourage international firms to increase their investment in the sector.

That’s not all: The move to reopen the door for exports comes alongside the government’s efforts to settle the remaining USD 1.2 bn in arrears owed to international oil companies by year-end.

The state will be settling a percentage of its arrears by allowing companies to export a larger share of their production, the source said. The move was the result of an expected bump in Israeli gas supplies, likely to start next month.

Shell and Petronas got the green light to export two LNG cargoes during October and November, our source said. The first shipment left Egypt yesterday and is currently en route to Italy, the Oil Ministry said.

The long-term plan: Egypt plans to stop importing LNG by 2030 and significantly up exports by 2027.

ALSO- BP inked a drilling contract with offshore contractor Valaris for its five new natural gas wells in the Mediterranean, according to a statement. The drilling will mark the start of BP’s new exploration and development campaign in Egypt under an MoU inked last month with Egas. Drilling operations are scheduled to begin next year.

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