Sources say Egypt is in talks with suppliers to purchase 40-60 LNG cargoes during this year due to the energy crisis.

Three sources familiar with the matter said that Egypt is in discussions with international energy companies and trading houses about buying 40-60 cargoes (LNG) of liquefied gas to ensure emergency fuel imports ahead of summer peak demand amid an worsening energy crisis.

According to the latest available data from the Joint Organisations Data Initiative, Egypt's gas production fell by 39% in February to its lowest level in 9 years. It was 3.3 billion cubic meters.

The most populous Arab nation has been a net gas importer since early 2024. It bought dozens of cargoes, abandoning its plans to be a gas supplier to Europe due to the sharp decline in gas production at home.

An industry source with knowledge of the situation said that "the government is in talks now to import at least forty LNG cargoes as well as around one million tons fuel oil."

The source said that "Gas is the main focus due to the flexible payment options compared with fuel oil. However, if LNG prices remain unfavourable, the latter will be considered."

According to a second source, Egypt will need up to 60 LNG cargoes to meet its immediate needs until 2025. However, over the longer term, this requirement may rise to 150.

Sources said that discussions are underway with Qatar, Algeria and Saudi Aramco, as well as major global trading companies.

(source: Reuters)