Egypt has secured LNG supply through 2026 at a total estimated cost of USD 8 bn, a government source told EnterpriseAM. The final bill may fluctuate based on domestic production and consumption levels, thanks to a built-in flexibility mechanism negotiated with suppliers.

Egypt will 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 previously told us that the sector has contracted for 60 shipments to secure needs through the summer — the peak window for consumption — at a value of USD 2.5-3 bn.

Exports are on hold: Egypt is expected to miss its 2027 deadline to resume exports and will remain a net gas importer until at least 2030, Bloomberg reports. LNG import agreements have added pressure to the global market, reducing available cargoes as European buyers seek alternative supplies to replenish reserves and offset lost Russian volumes.

The countermeasures: 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 around 300-350bncbf, 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 TRADE 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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