Egypt is poised to boost liquefied natural gas purchases until the end of the decade, tightening the global market and raising the prospect of yet-higher import bills.
Egypt Plans More LNG Deals, Driving Global Competition for Fuel
The nation is planning to buy LNG beyond the sizable volumes it’s already agreed to until 2028, as it looks to meet surging demand and fill a gap left by declining local output, according to people familiar with the situation. It has signed 10-year deals for import infrastructure and is in talks with Qatar over long-term gas supply contracts. The plans signal Egypt is likely to miss a 2027 target for resuming exports, highlighting the dramatic reversal in energy fortunes that turned it into a net gas importer only recently. There’s no sign the situation will improve in the longer term as it grapples with soaring power demand exacerbated by climate change and North Africa’s fastest-growing population. Egypt’s recent import deals have already contributed to tightening the global LNG market at a time when Europe has been looking for extra shipments to refill storage sites and replace Russian gas. If the nation keeps attracting cargoes for years, it’s likely to absorb some of the additional supply as new projects come online and help support prices.