Egypt’s Energy Crisis Deepens as LNG Import Bill Set to Soar 60% in 2025
Egypt faces mounting energy pressures as the country prepares for a dramatic surge in liquefied natural gas imports, with authorities projecting import costs to skyrocket to $20 billion in 2025 from $12.5 billion in 2024. The 60% increase comes as domestic demand continues to escalate while local gas production remains stagnant, forcing the North African nation to rely heavily on expensive imports.
Despite plans to commission floating LNG import terminals and ongoing negotiations for a potential long-term supply agreement with Qatar, energy experts warn that Egypt is unlikely to achieve its ambitious goal of resuming gas exports by 2027. The massive LNG shortfall is being described as one of the largest near-term financial burdens facing the country, with analysts predicting severe impacts on Egypt’s current-account deficit and dollar liquidity reserves.
“The LNG shortfall is widely seen as a major strain on Egypt’s economy and is expected to exacerbate current-account deficits,” warned Riccardo Fabiani, interim programme director at the International Crisis Group. The energy crisis underscores the mounting challenges facing Egypt’s economy as it struggles to balance domestic energy needs with fiscal sustainability.
Source: agbi.com
