Egypt is actively negotiating with international companies, primarily from the U.S., to secure long-term liquefied natural gas (LNG) supplies.
This strategic move aims to mitigate the country’s reliance on the volatile spot market and reduce the escalating costs associated with its growing energy demands.
The North African nation has experienced a decline in domestic gas production, leading to a resurgence in LNG imports.
This shift has been exacerbated by increased power consumption and a drop in output from key gas fields like Zohr.
To address this energy shortfall, Egypt is exploring long-term contracts spanning 3-4 years.
These deals would provide a more stable and predictable supply of LNG, shielding the country from price fluctuations and potential supply disruptions.
While the government aims to boost domestic production, it recognizes the need for supplementary LNG imports to meet the nation’s energy needs.
By securing long-term contracts, Egypt can optimize its energy mix and ensure a reliable supply of natural gas.