Sat. Jul 12th, 2025

Egypt in Energy Crisis Mode: Government Scrambles to Secure $3 Billion Worth of Emergency LNG Imports

Egypt is racing against time to prevent a catastrophic energy shortage, frantically negotiating to secure 40-60 LNG cargoes worth up to $3 billion ahead of the summer peak demand season. The urgent import program represents a massive escalation from last year’s $2 billion spend, as the country grapples with a nine-year low in domestic gas production that plummeted 39% in February.

President el-Sisi has ordered emergency measures “to ensure stable electricity flow” following rolling blackouts that swept across the nation earlier this year. The Egyptian Natural Gas Holding Company (EGAS) is in intense negotiations with major producers including QatarEnergy, Saudi Aramco, and Algeria’s Sonatrach, while also consulting global traders Trafigura and Vitol.

The crisis has forced Egypt to deploy additional floating storage and regasification units (FSRUs), with the ENERGOS POWER at Alexandria becoming the third leased unit and a fourth in the pipeline. Daily gas imports have surged to approximately 1.5 billion cubic feet as the country struggles to meet surging power demand. Government estimates indicate Egypt will need to import 155-160 cargoes in 2025, marking a dramatic transformation from net gas exporter to major LNG importer.

Source: Reuters

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