Egypt inks $3B LNG contracts with Shell, Total for 2025
Updated 2/3/2025 1:21:00 PM
Arab Finance: Egypt has signed contracts with Dutch Shell and French Total to purchase 60 shipments of liquefied natural gas (LNG) in 2025, valued at approximately $3 billion, an unnamed government source told Asharq Business.
Each shipment has a one-year grace period for payment from the delivery date.
The agreement includes the supply of around five shipments per month, with each shipment ranging between 160,000 and 165,000 cubic meters.
This volume provides about 500 million cubic feet of gas per day to the local market for one week.
The official added that the agreement was finalized in December and took effect in early January, with each shipment costing around $50 million.
Egypt seeks to import between 155 and 160 LNG shipments in 2025 to bridge the gap between domestic production and demand.
The total cost of LNG imports for the year is estimated at $8 billion, based on an average shipment price of $48 million to $50 million, according to a report submitted to the Prime Minister’s Office.
The country previously contracted a third gasification unit to receive LNG shipments at Sokhna Port, expected to arrive by June.
These three units will convert LNG back into gas to supply both Egypt and Jordan, particularly during summer when demand rises.
Egypt intends to continue importing LNG until at least 2030 to meet domestic energy needs, as natural declines in gas fields have reduced production to 4.3 billion cubic feet per day, while daily demand reaches about 6 billion cubic feet and increases in the summer.
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