• Egypt signs deals to import up to 290 LNG cargoes over 30 months, starting in July

• Trafigura, Vitol, Shell, Saudi Aramco, and others involved in the agreements

• Imports aim to ease grid pressure amid falling gas output and rising demand

Egypt has finalized a series of agreements to import up to 290 cargoes of liquefied natural gas (LNG) over the next 30 months, with deliveries set to begin in July. The move is designed to support the country’s energy supply as electricity demand rises sharply during the summer.

“These volumes allow us to reinforce the security of supply during the critical months,” said an unnamed executive at EGAS, the state-owned gas company. The agreements involve global industry players such as Trafigura, Vitol, Hartree Partners, BGN, Shell, Saudi Aramco, and Socar.

The total value of the contracts was not disclosed, but pricing is tied to European benchmarks, with an additional charge ranging from $0.80 to $0.95 per million British thermal units (MMBtu). Egypt has negotiated extended payment terms of up to six months to ease pressure on public finances.

The agreements come amid growing strain on Egypt’s energy sector. Although the country became gas self-sufficient in 2018 and was a net exporter in recent years, it has resumed LNG imports due to falling domestic production, particularly from the Zohr field, Egypt’s largest gas deposit. Declining output and delayed payments to producers have slowed extraction rates.

The government is working to prevent power outages that have occurred during past periods of high consumption. In summer 2024, Egypt imported a dozen LNG shipments through the Ain Sokhna floating terminal. That was followed by 20 more cargoes during the winter through tenders that included payment deferrals.

Earlier this year, Egypt signed contracts with Shell and TotalEnergies for 60 shipments valued at around $3 billion. Since January, the country has already received more than 75% of the total gas volume it imported in all of 2024. According to government forecasts, Egypt is expected to maintain elevated LNG import levels through 2030.