Egypt negotiates with global energy giants for long-term LNG deals to meet surging power demand.
“The ministry (of petroleum) is seeking three or four years of supply to hedge from sudden price increases,” an unnamed source told Reuters.
The country, which recently became a net importer of LNG, has purchased dozens of cargoes this year, driven by reduced production from the Zohr gas field.
The country’s natural gas output hit a seven-year low in September, the report said, citing joint organisations data initiative.
While consultancy Energy Aspects forecasts a 22.5 percent decline in domestic production by 2028, the country’s power demand is expected to grow by 39 percent over the next decade.
LNG spot prices have climbed to $14.50 per million British thermal units (mmBtu), up from $12/mmBtu when Egypt initially sought LNG cargoes, exacerbating financial pressures amid the country’s ongoing foreign currency shortage.
Egypt is also enhancing its infrastructure at Ain Sokhna and Alexandria, the news agency said.
Petroleum Minister Karim Badawi announced earlier this week that gas production rose by 200 million cubic feet as of October 2024, with an additional 420 million cubic feet per day set to come online from the Zohr and Raven concessions by early 2025.
