We’re once again seeking LNG imports: The Egyptian General Petroleum Corporation (EGPC) is heading back to the global LNG market to plug a supply gap after months of cutting and delaying imports on the back of oversupply and weaker demand, Bloomberg reports, citing people it says have knowledge of the matter. EGPC has issued a tender to procure three liquefied natural gas (LNG) shipments for delivery in mid-to-late November.

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Reversing course: Last month, the Oil Ministry moved to reduce the number of agreed-upon LNG shipments scheduled for shipment in October — for the second month in a row — to six shipments from an initially expected 19, citing a combination of weak domestic demand and increased local output.

LNG supplies secured through next summer: The Madbouly government has secured strategic medium-term contracts for LNG through June 2026 and is continuing to request additional shipments through monthly tenders to keep prices competitive, a government source told EnterpriseAM.

We have quite the roster of suppliers: Over the past two years, the Oil Ministry has expanded its natural gas supplier roster to more than 70, helping stabilize prices. Over the summer, Egypt agreed to purchase up to 125 LNG cargoes annually from a long list of suppliers that includes Saudi Aramco, Trafigura Group, Vitol Group, Hartree Partners, BGN, Shell, and Azerbaijan’s Socar.

The shift comes following the freeze of a new Israeli gas agreement, which had been expected to boost pipeline inflows beginning last October. EGPC is now turning back to the global market to secure additional LNG shipments to meet local demand, a senior government official told EnterpriseAM. The source added that up to 20 LNG shipments are expected before year-end, with new cargoes being secured through tenders with approved suppliers.

REMEMBER- Israel has hit pause on its USD 35 bn gas export agreement with Egypt until its interests are secured and a fair price for the Israeli market is agreed upon, Israeli Energy Minister Eli Cohen’s office said in a statement earlier this month. While political tensions between Cairo and Tel Aviv already complicated the agreement, this most recent roadblock is reportedly from internal commercial disputes in Israel.

Still, import needs are expected to decline next year. LNG import volumes are projected to fall around 30% in 2026, supported by higher domestic production and growing renewable energy capacity, according to the source. Our LNG requirements for next year are estimated at 120-125 shipments.

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