Exclusive-Egypt in talks to buy 40-60 LNG cargoes amid energy crunch, sources say

Written by Muhammad Ezz and Marwa Rashad

CAIRO/London (Reuters) – Egypt is holding talks with energy companies and trade houses to buy 40-60 liquefied natural gas shipments (LNG) amid the aggravating energy crisis before peak in the summer, and tells three sources on the science of passing Reuters.

The country faces spending up to 3 billion dollars at current prices to secure liquefied natural gas, and is actually pressing government treasures under pressure to maintain the lights amid low gas production and the cost of the living crisis.

On Wednesday, president Abdel Fahia Al -Sisi directed the government to “take time to take any necessary needs to ensure the flow of stable electricity,” according to a statement.

“The government is now in talks to import at least 40 liquefied natural gas shipments and about a million tons of fuel oil,” said Reuters.

The source added: “The gas was the primary focus, given the most flexible payment options available compared to fuel oil, although the latter is still under study if liquefied natural gas prices are not favorable.”

In the past two years, Egypt has endured the power outages with a decrease in demand in natural gas. Egypt’s gas production in February reached its lowest level in nine years.

The world’s most populated Arab country returned to be imported of net gas last year, as it bought dozens of goods and abandoned plans to become a supplier of Europe with its decline in production.

The difficult currency crisis in Egypt delayed payments to international oil companies, as it curbed exploration and slow oil and gas production.

A second trading source said, adding in the long term that may rise to 150 shipments.

The sources said that he is holding talks with Qatar, Algeria, Saudi Aramco and the major global commercial homes.

The Ministry of Petroleum in Egypt, Qatar Energy, Aramco, Saudi Aramco, and the Algerian Ministry of Energy and Mining, immediately did not respond to Reuters requests for comment.

Egypt has bought 1.84 million tons of LNG this year, and data from the S& GLBAL Commodity Insights appear. This is approximately 75 % of its total for 2024.

Israeli gas

There was an additional problem that was a decrease in the offer from the Leviathan field in Israel, which was blamed for the scheduled maintenance. Egypt has forced to stop or reduce gas supplies to many fertilizer factories for at least 15 days.

“My factories have stopped completely since Saturday. Others have been partial.”