Egypt LNG Exports Rebound On Higher Oil Burn, Israeli Gas

23 Sep 2022 Issue: 65 / 38 By: Peter Stevenson

Egypt is prioritizing money-spinning LNG exports by switching out natural gas for fuel oil in its power generation mix. After falling to just two cargoes in August, at least seven LNG cargoes are set to ship this month. The near-term start-up of Israel’s Karish field will further bolster volumes.

The ramp-up of fuel oil burn for power generation, piped gas imports from Israel, and an energy conservation drive enabled Egypt to continue exporting LNG during the peak summer gas demand season. Though LNG exports fell to just two cargoes for August, the lowest since late 2020, volumes have rebounded strongly since the start of September, potentially enabling the cash strapped country to start rebuilding its strained forex reserves on the back of record international LNG prices.

Latest figures from data intelligence firm Kpler indicate that six LNG cargoes (388,000 tons of LNG) sailed from Egypt in the first three weeks of September with at least one further cargo scheduled to load over the coming days. This marks a sharp rebound from four cargoes for June, five for July and a mere two for August amid the summer peak in domestic gas demand (see chart 1). (CONTINUED - 1382 WORDS)