Egypt doubles regasification capacity to boost energy hub ambitions

Egypt is significantly bolstering its energy strategy by doubling its national regasification capacity to 2.25 billion cubic feet per day. This expansion is attributed to the recent integration of modern floating regasification units.

The announcement was made on Tuesday in Cairo by President Abdel Fattah Al-Sisi during a meeting with Prime Minister Mostafa Madbouly and Oil Minister Karim Badawi.

This enhanced infrastructure provides Egypt with increased capability to process both imported and domestic liquefied natural gas (LNG). This processed gas can then be utilized to meet domestic demand or re-exported to Europe, aligning with broader efforts for energy diversification in the wake of shifts in Russian supplies. The Egyptian government views this as a crucial strategic economic lever and is actively expanding partnerships with major energy companies such as TotalEnergies, Eni, and QatarEnergy to develop its offshore and logistics capabilities.

However, this ambitious development is balanced against several challenges. In 2023, Cairo had to reduce its LNG exports to satisfy surging domestic demand, particularly during the summer months. Ongoing projects include the modernization of the national electricity grid, the further development of renewable energy sources, and the gradual phasing out of energy subsidies.