The Madbouly government has secured LNG supply through 2026 at a total estimated cost of USD 8 bn after signing agreements with six international energy companies, a government source in the energy sector told EnterpriseAM. The final bill may fluctuate based on domestic production and consumption levels, thanks to a built-in flexibility mechanism negotiated with suppliers.

We’ll be investing more in regasification capacity to make it work: The government plans to lease a fifth floating regasification plant to accommodate the remaining 46 incoming LNG shipments. Talks with Qatar are also underway for medium-term LNG supply.

REMEMBER- A government source has previously told us that the Oil Ministry will spend USD 2.5 bn on 60 LNG shipments this summer to meet the expected high electricity demand.

The impact on global markets: Our continued reliance on imports will “likely [help] absorb some of the additional supply as new projects come online and help support prices,” Bloomberg writes. The market is already experiencing heightened demand, with Europe seeking extra shipments to replace Russian gas.

Exports to remain on hold: Egypt is expected to miss its 2027 goal of resuming LNG exports and will remain a net gas importer until at least 2030, our source said, adding that the 2030 timeline lines up with efforts to boost local production and investments in the gas sector.

The government is preparing a new bidding round to attract energy investors and is seeking to increase natural gas production by developing several fields to produce some 300 to 350 bn cubic feet of gas, another government source told us. The plan to increase production will reduce the import bill for petroleum products for the current fiscal year by approximately USD 1.5 bn, according to the source.

A big plan unfolding: The government wants to see petroleum sector output rise to EGP 1.7 tn this fiscal year, according to documents seen by EnterpriseAM. The plan is to unlock some EGP 208 bn in private investment in the sector during the 2025-2026 fiscal year — 40% of it in natural gas — with a goal of generating USD 5 bn in export revenues by 2030, up from USD 3.3 bn currently.

IN OTHER ENERGY NEWS-

More details about the plan to bring in Cypriot gas to Egypt for liquefaction and re-export: Plans are underway to fast-track the connection of Cyprus’ offshore Cronos and Aphrodite gas fields to Egypt’s Zohr infrastructure, with a combined 1.3 bcf/d of gas set to be routed through the network by 2028, government sources told Asharq Business.

Breaking down the timeline: Eni is expected to complete a 90-km subsea pipeline linking the Cronos field to Port Said by the end of 2027, bringing in around 500 mcf/d, a percentage of which will be used to feed the national grid. Gas from the Aphrodite field will follow with 800 mcf/d coming in a year later.

REMEMBER- Egypt and Cyprus inked multiple agreements earlier this year that will see Cyprus ship natural gas from its offshore fields to be liquefied in facilities in Idku and Damietta before being re-exported to foreign markets.

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