Egypt to maintain LNG imports until 2029-2030
Updated 12/1/2024 8:46:00 AM
Arab Finance: Egypt plans to continue importing liquefied natural gas (LNG) until 2029-2030 to address a shortfall in domestic supply, Asharq Business reported, citing an unnamed government official.
Current natural gas production stands at 4.3 billion cubic feet per day, while the national demand reaches around 6 billion cubic feet daily, rising during the summer months.
After halting LNG imports in 2018 due to significant discoveries like the Zohr field, Egypt resumed imports this year to counter declining output.
The government has secured up to 50 LNG shipments since April and delayed some deliveries to the first quarter (Q1) of 2025.
Efforts to boost local production include agreements with international energy firms, such as Italy’s Eni and the US-based Apache, to enhance output.
Egypt has also made progress on settling outstanding debts, paying $1 billion of the $2 billion owed to foreign oil companies in November.
To ensure future supply, the government is negotiating new LNG contracts with extended payment terms of up to a year, instead of the current six-month terms agreed-upon with suppliers.
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