Egypt has signed agreements worth approximately $3 billion with Shell and TotalEnergies to import 60 cargoes of liquefied natural gas (LNG) to address its energy needs for 2025, according to three sources familiar with the matter.
After experiencing a significant decline in domestic production, Egypt reverted to being a net importer of natural gas in 2024. The country had to purchase numerous LNG cargoes and shelve plans to supply Europe. The drop in domestic gas output was exacerbated by lower production from the Zohr field and increased power consumption, bringing Egypt’s natural gas supplies to a seven-year low in September 2024, based on data from the Joint Organisations Data Initiative.
The 60 LNG cargoes secured through the deals are expected to meet the majority of Egypt’s energy demand for this year. The sources, who requested anonymity, stated that these shipments would help cover shortfalls due to domestic production gaps.
Both Shell and TotalEnergies declined to comment, and Egypt’s petroleum ministry has not yet responded to requests for information.
In November 2024, Reuters reported that Egypt had entered discussions with U.S. and other international companies for long-term LNG contracts as part of its strategy to reduce reliance on costlier spot market purchases. During the summer months, when high demand for air-conditioning exacerbates the energy strain, Egypt has turned to the spot market, paying premiums of $1 to $2 for LNG.
The country faces an additional financial challenge due to Egypt’s foreign currency shortage, and spot market LNG prices have surged in 2025, averaging over $14 per million British thermal units (mmBtu), compared to $12/mmBtu when Egypt first began tendering for LNG supplies.
In January, Egypt issued a tender for four LNG cargoes to be delivered between February and March. Another tender may be issued later this year, depending on energy demand and market conditions, a source indicated.
Domestic gas output is projected to decrease by 22.5% by the end of 2028, according to consultancy Energy Aspects. Meanwhile, analysts predict a 39% increase in Egypt’s power consumption over the next decade.