Egypt is negotiating with foreign companies, including U.S. firms, for long-term liquefied natural gas (LNG) supplies to reduce reliance on costly spot market purchases.
The country has seen a sharp drop in domestic gas production, falling to a seven-year low in September.
As a result, Egypt has become a net importer of gas, reversing its previous role as an exporter.
With gas output projected to decline further and demand set to rise, Egypt aims to secure flexible LNG contracts for the next three to four years.
The government is particularly focused on avoiding price spikes and managing rising energy needs.
LNG prices have recently increased from $12 to $14.50 per million British thermal units, straining Egypt’s foreign currency reserves.
In response, the country is expanding its gas import infrastructure, with new facilities planned for 2025.
Despite these challenges, minor production increases and lower-than-expected temperatures have provided some relief.
