Ahmed Kamel – Egypt Daily News
Egypt has exported a rare shipment of liquefied natural gas (LNG), totaling approximately 3.75 billion cubic feet, to Europe through Shell and Petronas via the Idku liquefaction plant. The move is part of a broader effort by the Egyptian government to incentivize foreign companies to increase their investments in exploration and production, according to a government official who spoke to Asharq on condition of anonymity.
The official explained that Shell was allocated around 250 million cubic feet of gas per day for 15 days to facilitate the export of this shipment. This export was approved under a set of incentives announced by the Egyptian government in August 2024. These measures allow foreign companies to export a portion of their share in new production, with the proceeds to be used for settling outstanding dues. Additionally, the policy includes an increase in the price paid to companies for their share of the gas.
The Idku liquefaction facility is jointly owned by Shell and Petronas, which together hold about 71% of the plant, split equally. The Egyptian government, through the Egyptian General Petroleum Corporation (EGPC) and the Egyptian Natural Gas Holding Company (EGAS), owns a 24% stake. The remaining 5% is held by the French energy company Engie.
The same government official noted that a second LNG shipment is scheduled for export in October, with the vessel expected to arrive at the beginning of the month.
Egypt’s Prime Minister Mostafa Madbouly has said the government expects the country to return to being a net gas exporter by 2027. By that time, production is forecasted to rise to 6.6 billion cubic feet per day, compared to the current level of around 4.1 billion.
Gas output in Egypt has recently begun to increase, following progress in settling outstanding debts owed to foreign energy companies debts that had mounted during the country’s dollar shortage crisis.
