Egypt Finalizes Massive LNG Import Deals Worth Billions as Energy Crisis Deepens
Egypt has locked in sweeping liquefied natural gas supply agreements with energy giants Saudi Aramco, Shell Plc, and Trafigura, securing up to 290 LNG cargoes over the next two and a half years in a desperate bid to stabilize its power grid ahead of peak summer demand.
State-owned Egyptian Natural Gas Holding Co. (EGAS) has inked deals with multiple major traders including Vitol Group, Hartree Partners LP, BGN, and Azerbaijan’s Socar, with Hartree and BGN alone securing more than 100 cargoes. This represents Egypt’s second major LNG procurement this year, following earlier deals worth around $3 billion with Shell and TotalEnergies for 60 cargoes.
The aggressive procurement strategy comes as Egypt struggles with a deepening domestic supply crunch, with its monthly summer energy bill expected to surge to approximately $3 billion starting in July, up sharply from $2 billion last year. Contract prices are tied to European gas benchmarks with premiums ranging from $0.80 to $0.95 per million British thermal units.
The deals offer Egypt crucial breathing room with payment deferrals of up to 180 days as the country continues recovering from a prolonged foreign currency crisis. Egypt’s natural gas production targets, particularly from the giant Zohr offshore gas field, have fallen short due to technical difficulties and unpaid debts to foreign operators.
Source: Oilprice.com
