Egypt to finalize long-term LNG agreements with global suppliers this week

The Madbouly government is reportedly looking to finalize long-term LNG supply agreements with up to six companies this week for deliveries through June 2026, Bloomberg reports, citing unnamed sources. The agreements would secure more than 160 shipments of LNG and could be followed by additional contracts covering 2027–2028 to reduce reliance on the spot market, which has been both volatile and often expensive, the sources said.

The companies include Saudi Aramco, Trafigura Group, Vitol Group, Hartree Partners LP, and BGN, according to the sources.

REMEMBER- The government is preparing for a surge in demand over the summer months by booking in LNG shipments — and the necessary infrastructure to process the deliveries — to close the gap between demand and supply. Adding pressure to keep the lights on — and for Egypt to potentially overprepare — are repeated pledges from the government that the dreaded days of blackouts won’t return.

In preparation for the uptick in LNG deliveries, the 750 mcf/d-Energos Eskimo has now arrived in Egypt, according to shipping data. The vessel will join the recently received Energos Power, the soon to be replaced 750 mcf/d-Hoegh Galleon in Ain Sokhna and be followed soon by a unit from Turkish state-owned energy firm BOTAS.

DATA POINT- Egypt needs around 6.2 bn cubic feet per day (bcf/d), but domestic production only contributes roughly 4.4 bcf/d.