Saudi Arabia and Libya have stepped in to provide Egypt with a lifeline during its ongoing energy crisis. The two countries have collectively financed gas cargoes worth at least $200 million to help the North African nation weather the storm.
Egypt has been grappling with a significant decline in domestic gas production, leaving it struggling to meet rising demand, particularly during the summer months. The energy crisis has been exacerbated by a hard currency shortage, limiting Egypt’s ability to import liquefied natural gas (LNG) on its own.
According to sources familiar with the matter, Saudi Arabia has financed three of the 32 LNG cargoes Egypt has purchased this year, while Libya has contributed one. These purchases, valued at around $200 million, have been crucial in preventing widespread power outages and maintaining stability.
The financial support from Saudi Arabia and Libya reflects the strong bilateral ties between these countries and Egypt. Both Saudi Arabia and the United Arab Emirates have provided billions of dollars in aid to Egypt in recent years, bolstering its economy and supporting President Abdel Fattah Al-Sisi’s government.
Egypt’s energy crisis has had a significant impact on its economy, straining its budget and contributing to rising inflation. The government has been forced to implement load-shedding measures and increase fuel and food subsidies to alleviate the burden on its citizens.
However, these measures have not been enough to offset the devaluation of the Egyptian pound, which has lost nearly 60% of its value since March 2024. This has led to a surge in living costs for Egyptians and put further pressure on the government’s finances.