Ahmed Kamel – Egypt Daily News
Egypt is advancing a dual-track strategy to safeguard its energy and food security, announcing plans to import 75 additional liquefied natural gas (LNG) cargoes valued at an estimated $3.75 billion.
The measures reflect mounting seasonal energy demand, persistent production gaps, and broader economic pressures facing the country as it balances fiscal constraints with strategic supply needs.
Expanding LNG Imports Ahead of Summer
According to a government official who spoke on condition of anonymity, Cairo is preparing to launch an international tender in March to import approximately 75 additional LNG shipments to meet domestic energy requirements. Imports are expected to begin in April, in time to supply power plants during peak summer consumption.
The new shipments, priced at an average ceiling of $50 million per cargo, would bring the total estimated value to roughly $3.75 billion. Under the proposed tender terms set by the Ministry of Petroleum and Mineral Resources, suppliers would be allowed deferred payment of at least six months from the date of import. A 25 percent letter of credit would be opened once the cargo enters Egyptian territorial waters, a structure designed to ease immediate pressure on foreign currency liquidity.
The decision comes after higher-than-expected demand forecasts from the Ministry of Electricity for the coming summer season. Originally, the plan had been limited to around 100 LNG shipments, but rising projected consumption prompted the addition of 75 further cargoes.
Egypt’s natural gas production has declined to around 4.1 billion cubic feet per day, while domestic demand stands near 6.2 billion cubic feet daily and can climb to approximately 7.2 billion cubic feet during the summer months. The gap has widened due to natural field depletion and slower-than-anticipated output growth.
Once a net gas exporter following major offshore discoveries such as the Zohr field, Egypt has increasingly relied on LNG imports to stabilize supply. Authorities plan to continue LNG imports through 2029–2030, alongside leasing four floating regasification units (FSRUs) to expand import capacity. Combined maximum regasification capacity is projected at 3.45 billion cubic feet per day, including reserve capacity from the vessel Energos Force currently stationed in Jordan under a bilateral cooperation agreement.
Last year alone, Egypt imported between 155 and 160 LNG cargoes to bridge the domestic supply deficit, underscoring the structural nature of the production-demand imbalance.
Balancing Fiscal Pressures with Strategic Needs
Together, the LNG import expansion and wheat procurement increase illustrate the government’s effort to navigate structural supply gaps while managing limited fiscal and foreign currency resources.
Energy imports are necessary to prevent electricity shortages during peak demand, particularly as high summer temperatures drive air-conditioning use. Meanwhile, raising wheat procurement prices signals support for domestic agricultural output at a time when global grain markets remain sensitive to geopolitical disruptions and climate-related shocks.
Economists note that while import financing mechanisms can stabilize short-term supply, long-term sustainability will depend on boosting domestic production, improving efficiency, and narrowing structural imbalances in both energy.
