Egypt has finalized a sweeping series of liquefied natural gas (LNG) supply agreements with Saudi Aramco, Shell Plc, Trafigura, and several other major traders, as the country’s struggles to shift back to long-term net exporter, rather than importer amid a deepening domestic supply crunch, according to a Bloomberg report.
State-owned Egyptian Natural Gas Holding Co. (EGAS) secured as many as 290 LNG cargoes over the next two and a half years, starting as early as next month.
Alongside Aramco, Shell, and Trafigura, volumes will also be sourced from Vitol Group, Hartree Partners LP, BGN, and Azerbaijan’s Socar. Hartree and BGN alone were awarded more than 100 cargoes, underscoring their growing presence in an increasingly competitive LNG market.
This is the second major LNG deal this year for Cairo.
Earlier this year, Egypt signed deals worth around $3 billion with Shell and TotalEnergies for 60 LNG cargoes to cover 2025 demand.
Contract prices are tied to European gas benchmarks, with premiums ranging from $0.80 to $0.95 per million British thermal units. The terms offer Egypt some breathing room, allowing payment deferrals of up to 180 days, as it continues to recover from a prolonged foreign currency crisis.
This aggressive procurement strategy aims to stabilize Egypt’s power grid ahead of peak summer demand, which has previously triggered widespread blackouts. The country’s monthly summer energy bill is now expected to surge to approximately $3 billion starting in July, up sharply from $2 billion last year.
Egypt is struggling to fill in the gaps as its natural gas production targets, particularly from the giant Zohr offshore gas field, fall short due to technical difficulties and unpaid debts to foreign operators.
By Charles Kennedy for Oilprice.com
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