As Egypt prepares for the country’s summer energy demand. This matter is now in talks with international energy companies. Trading houses to buy 40 to 60 cargoes of liquefied natural gas (LNG).
President Abdel Fattah has directed officials to take preventative action to avoid power outages.
Although these talks also include plans to buy about a million tons of fuel oil, LNG is still prioritized due to its more lenient payment regulations.
Egypt has had frequent power outages in recent years as a result of declining natural gas production.
Given that February’s gas production was the lowest in nine years, the nation was forced to abandon its goal of supplying gas to Europe and become a net importer in 2023.
According to a second source, Egypt would require as many as 60 LNG cargoes in 2025 alone and possibly as many as 150 cargoes a year in the decades to come.
In order to get the required supply, negotiations are in progress with Saudi Aramco, Qatar, Algeria, and significant trading firms.
Israeli Gas Supply Adds Further Pressure
Gas imports from Israel’s Leviathan field have stalled due to ongoing maintenance, which has added to Egypt’s energy problems.
The unexpected reduction in supplies has affected a number of industries, particularly the production of fertilizer, where several units have been forced to shut down.
Egypt is highly dependent on imported gas to cover its household and industrial energy demands. This disruption occurs at a crucial moment.
Currently, between 40% and 60% of Egypt’s gas imports are coming from Israel, considering 15% to 20% of the nation’s overall gas consumption.
Israeli suppliers are now attempting to raise the price of their gas deliveries to Egypt by 25%.
Israeli manufacturers contend that the existing prices are too low in light of the market and are seeking to boost them to around $7.50.
