• Egypt repays about $5 billion in foreign oil and gas arrears
• Government aims to cut remaining arrears to $1.2 billion by 2026
• Payments follow currency shortages; LNG imports hit record 8.92 million tons

The Egyptian government announced on Wednesday, Jan. 21, 2026, that it has paid down part of the financial arrears owed to its foreign partners in the oil and gas sectors.

While arrears to foreign oil companies stood at $6.1 billion on June 30, 2024, Cairo has paid approximately $5 billion. According to Prime Minister Moustafa Madbouly, the government now seeks to reduce the amount to about $1.2 billion by June 30, 2026.

This payment is part of an effort to regularize energy debts accumulated over recent years. It comes amid foreign currency shortages that had led authorities to delay the settlement of certain claims. Moustafa Madbouly said the state is now moving toward the regular settlement of monthly invoices submitted by foreign partners.

A financial and energy context under strain

The announced payments are part of an economic environment marked by pressure on foreign currency flows. According to Arab News, the dollar shortage seen in recent years has affected several strategic sectors, including energy, by limiting the state's ability to honor certain commitments denominated in foreign currency.

According to the Central Bank of Egypt, this financial constraint was part of broader balance of payments imbalances. These were driven notably by the rise in energy and food imports, as well as by pressure on the Egyptian pound since 2023.

Financial room for maneuver has, however, improved recently. According to data published by the institution, the country's net foreign exchange reserves reached approximately $51.45 billion at the end of December 2025, after exceeding the $50 billion mark in the fourth quarter of 2025.

This improvement in financial indicators has not, however, translated into an immediate easing of constraints on the energy sector, where the issue of gas supply remains a central challenge. On that front, according to the Middle East Economic Survey (MEES), Egypt imported approximately 8.92 million tons of LNG (liquefied natural gas) in 2025. This was a record volume, higher than the previous peak of 7.53 million tons, according to data from Kpler.

This increase comes after the resumption of imports in 2024, following four years without significant purchases.

Abdel-Latif Boureima