Egypt is looking to buy liquefied natural gas through the end of the decade, a move to meet surging summer power demand and supplant flagging domestic production.
The government is in discussions with LNG suppliers for contracts that last through 2028 to 2030, according to people with direct knowledge of the matter, who asked not to be identified because the talks are private. The move is also intended to reduce reliance on the volatile spot market, the people said.
The contracts will include a flexibility clause, in case gas needs are revised over the coming years, two of the people said. The government will secure the rest of the LNG cargoes it might need via purchase tenders, they added.
Egypt, once an LNG exporter, has turned to purchasing the fuel as a booming population and rising temperatures boost demand even as its domestic fields age. The government’s move to try to secure supply for years indicates it is becoming a major demand center, helping to tighten global gas markets.
Egypt’s oil ministry didn’t immediately respond to a request for comment.
The country has already made plans to add several floating units to import the fuel and is in talks with Qatar over long-term gas supply contracts.
Egyptian LNG exports have been steadily declining since they hit a peak of 7.7 million tons a year in 2022, according to shipping data compiled by Bloomberg. The country imported about 2.5 million tons last year.
The energy deficit in the Middle East’s most populous nation more than doubled last year to $11.3 billion, according to Goldman Sachs Group Inc. The shortfall raised Egypt’s current account deficit last year to 6.2% of gross domestic product from 3.2%.
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