Egypt has finalized a series of significant liquefied natural gas (LNG) supply agreements with leading global energy firms, including Saudi Aramco, Shell Plc, Trafigura, and others, as it intensifies efforts to return to long-term net exporter status amid a worsening domestic supply shortfall.
State-owned Egyptian Natural Gas Holding Company (EGAS) has secured up to 290 LNG cargoes over the next two and a half years, with deliveries set to begin as early as next month. In addition to Aramco, Shell, and Trafigura, Egypt’s LNG procurement portfolio includes shipments from Vitol Group, Hartree Partners LP, BGN, and Azerbaijan’s Socar. Notably, Hartree and BGN were awarded over 100 cargoes combined, reflecting their rising influence in the competitive LNG market.
This marks Egypt’s second major LNG procurement initiative this year. Earlier, the government inked contracts valued at approximately $3 billion with Shell and TotalEnergies for 60 LNG cargoes scheduled to meet demand in 2025.
Contract prices are indexed to European gas benchmarks, with premiums between $0.80 and $0.95 per million British thermal units. The agreements include payment deferrals of up to 180 days, providing Egypt financial flexibility as it recovers from a prolonged foreign currency crisis.
The aggressive LNG buying strategy aims to stabilize the nation’s power grid ahead of the peak summer period, which historically has seen widespread blackouts. Egypt’s monthly energy bill during the summer months is projected to jump to around $3 billion from $2 billion last year, underscoring rising costs.
The country faces mounting challenges in meeting domestic natural gas production targets, especially from the massive Zohr offshore gas field, where technical setbacks and unresolved debts to foreign operators have hampered output.
Through these substantial LNG imports, Egypt seeks to bridge the supply gap and secure energy stability amid ongoing production difficulties.
