Egypt Eyes Summer Power Needs, Looks To Limit LNG Spending

11 Apr 2025 Issue: 68 / 15 By: Peter Stevenson

Cairo is moving away from public spot tenders to secure its summer LNG needs. It has indicated that it will pay a maximum of $14/mn BTU, but will likely have to fork out an additional $2 premium for 12 month-deferred payments.

As Egypt’s gas output continues to dwindle, the country is becoming increasingly dependent on gas imports to ensure continued supplies to power plants and petrochemicals facilities, with the era of net-LNG exports firmly ending. Already reliant on around 1bn cfd of pipeline gas imports from Israel, Egypt imported 1.1mn tons of LNG in the low-demand Q1 period according to Kpler, putting it well on course to smash last year’s seven-year high 2.5mn tons.

Since July last year Egypt’s gas deficit (output minus demand) has averaged 1.7bn cfd, peaking at 1.85bn cfd in August during the summer peak electricity demand season (MEES, 22 November 2024). Gas accounts for more than 80% of Egypt’s power generation fuel mix, and with summer looming, Cairo is seeking to secure sufficient volumes to avoid a repeat of last year’s blackouts (MEES, 28 June 2024). (CONTINUED - 945 WORDS)