Egypt taps global LNG markets for six more June cargoes

Another Egyptian LNG buying spree: Egypt is tapping global markets for another six 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 Egyptian 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 top destination 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 Egypt’s 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.