Ahmed Kamel – Egypt Daily News
Egypt has renewed its liquefied natural gas import agreements with Shell and TotalEnergies, contracting 60 new LNG cargoes for delivery during 2026 at an estimated cost of $2.7 billion based on current global prices, a government official told Asharq.
Under the new agreements, Egypt will import five LNG cargoes per month starting in January, aimed at meeting domestic energy demand amid a widening gap between consumption and local production. The contracts include a deferred payment mechanism, allowing Egypt a grace period of up to one year from the date of receipt of each cargo. Pricing will be based on prevailing market rates at the time of delivery, with an added premium reflecting the extended payment terms, the official said, speaking on condition of anonymity due to the sensitivity of the information.
In response to inquiries, Shell said its export plans for 2026 remain under review and that it is not currently in a position to comment on specific contractual arrangements.
According to the government source, prices for the initial cargoes are expected to range between $10 and $12 per million British thermal units, compared with an average of around $13 per million Btu in 2025, reflecting a recent easing in global gas prices.
Each LNG cargo will carry between 160,000 and 165,000 cubic meters, providing the local market with approximately 500 million cubic feet of gas per day for about one week. The imported volumes are intended to help offset declining domestic gas production and ensure the stability of electricity generation and industrial supply.
Egypt imported between 155 and 160 LNG cargoes during 2025 to bridge the shortfall between domestic output and consumption. Natural gas production has declined to about 4.2 billion cubic feet per day due to natural field depletion, while daily demand stands at roughly 6.2 billion cubic feet and can rise to around 7.2 billion cubic feet during the summer months when electricity consumption peaks.
Cairo plans to continue importing LNG through at least 2030, alongside expanding its regasification infrastructure. The government has moved to lease four floating storage and regasification units to secure long-term supply flexibility. Currently, three regasification vessels are operating at Ain Sokhna port with a combined maximum capacity of about 2.25 billion cubic feet per day, in addition to the Energos Winter vessel at Damietta port, which can process up to 450 million cubic feet per day.
The new LNG agreements underscore Egypt’s efforts to balance energy security with fiscal constraints, as it navigates fluctuating global energy markets while working to stabilize domestic supply amid rising demand and declining production.
