Egypt, the most populous Arab nation, became a net gas importer again last year, scrapping plans to supply Europe due to a sharp drop in domestic production.
Local gas output hit a seven-year low in September 2024, according to Joint Organisations Data Initiative data, driven by declining output from the Zohr gas field and rising power consumption.
Sources, speaking anonymously, said the 60 LNG cargoes will meet most of Egypt’s demand in 2025.To meet peak summer demand for air conditioning, Egypt purchased several LNG cargoes on the spot market, paying a premium of $1-$2 per unit.
The country, already struggling with a foreign currency shortage, faces added financial pressure as LNG spot prices have risen to over $14 per mmBtu in 2025, up from around $12 when Cairo began LNG tenders.In January, Egypt issued a tender for four LNG cargoes for February-March delivery and may release another later this year, depending on demand, market conditions, and prices, a source said.
Consultancy Energy Aspects predicts domestic gas production will decline another 22.5% by 2028, while analysts expect power consumption to surge by 39% over the next decade.
