Gov’t taps global markets for six more LNG cargoes to avoid summer blackouts

More LNG coming our way: Egypt is tapping global markets for another six liquefied natural gas (LNG) shipments this month, bringing its total June deliveries to 28, Al Arabiya reports, citing unnamed government officials. The move aims to offset a supply shortfall from maintenance shutdowns at Israeli gas fields and shore up reserves ahead of heightened summer demand.

BACKGROUND- The government is looking to secure 130 LNG shipments starting June to ensure we see no blackouts this summer. A big chunk of our LNG imports come from the US, Trinidad and Tobago, Mauritania, and Nigeria — we were the topdestination for US LNG cargoes last month, securing 16 of the 153 cargoes delivered throughout the month.

How much gas are we talking about? According to initial estimates, May’s LNG shipments cover 23-26% of local demand (around 1.5-1.7 bcf / d), while June’s planned cargoes should provide close to 2 bcf / d. To put things in perspective, Egypt imported nearly 2.35 bcf / d of natural gas in 1Q, accounting for 38% of the country’s total available gas supply. As summer consumption edges toward 7 bcf / d, imports are set to play an even larger role, covering nearly 45% of peak consumption.

Wanna go deeper? We unpacked the country’s gas balance sheet over the last three years earlier this week.

Sohag is getting a new public freezone

Sohag is set to house a new public freezone after securing preliminary approval from the General Authority for Investment and Freezones (Gafi), Sohag Investors Association Chairman Mahmoud El Shendweily told Al Borsa. The zone aims to funnel fresh capital into Upper Egypt and scale up industrial exports by leveraging the governorate’s direct access to Red Sea shipping hubs. However, the final rollout hinges on overhauling the area's aging infrastructure to set up dedicated power, water, and natural gas networks.

The cost question is still hanging over investors. Manufacturers are pushing for the return of tax breaks, relief on overdue social ins. payments, and lower industrial land prices, El Shendweily said. He claimed land prices jumped from EGP 200 to EGP 1.1k per sqm — a figure still lower than the EGP 1.9k per sqm we reported last year but enough to echo the broader manufacturer backlash over surging land costs slowing new investment.

IN CONTEXT- The Sohag project aligns with a broader state drive to launch four new public freezones by the end of the year. As Egypt’s nine existing zones hit 95% capacity, Gafi plans to launch four new freezones in 10th of Ramadan, New October, New Borg El Arab, and New Alamein.