Egypt’s Oil Ministry secures energy supplies for summer

Egypt’s Oil Ministry is moving to ensure energy security for heavy manufacturers this summer, allocating five LNG cargoes per month to the industrial sector starting in June — up from just one previously, Al Arabiya reports, citing an unnamed government official.

The details: The shipments — which average 750k cbm and are valued at USD 300-350 mn — will insulate the export-critical sector from power cuts with 16 bcf of gas pumped monthly into the national grid. Over 65% of the supply is earmarked for fertilizer, petrochemical, and steel factories.

The Egyptian government is shifting the bill to the private sector. With domestic gas production dropping 50% from its 2021 peak, the country is relying on a 40-cargo LNG procurement plan, mostly from US suppliers, to keep the lights on and factories running this summer. The move will push our natural gas import bill up 26% to USD 10.7 bn in FY 2026/27. To offset the costs, the government hiked natural gas prices yesterday for energy-intensive sectors by USD 2 per mn British thermal units (Btu).