Egypt is in talks with U.S. and other foreign companies to purchase long-term volumes of liquefied natural gas (LNG) as it seeks to cut its reliance on more costly spot market purchases to meet power demand, three The most populous Arab country has returned to being a net importer of natural gas, buying dozens of cargoes this year and abandoning plans to become a supplier to Europe amid a steep decline in domestic gas output.
Egypt’s domestic supplies fell to a seven-year low in September, according to data from the Joint Organizations Data Initiative, mainly due to declining production from Zohr gas field and higher power consumption.
Domestic gas output is expected to drop by a further 22.5% by the end of 2028, data from consultancy Energy Aspects found. Meanwhile, analysts expect the country’s power consumption to increase by 39% over the next decade.
“The ministry (of Petroleum) is seeking three or four years of supply to hedge from sudden price increases. It is also seeking to include a flexibility clause as the government hopes it could maybe find gas sooner or doesn’t need that much gas,” the first industry source said.