Sources say that Egypt has agreed to purchase up to 160 LNG cargoes by 2026.

Industry sources familiar with the matter said that Egypt has signed agreements with various energy firms and trading companies to purchase between 150-160 cargoes liquefied gas (LNG) from now until 2026 to meet its power needs.

Gas purchases will cost over $8 billion at current prices and add to the pressure already placed on the government's coffers, which are already struggling to keep lights on in the face of falling gas production, rising costs, and an economic crisis.

Egypt's currency crisis has caused a delay in payments to international oil companies, reducing exploration and lowering oil and gas production.

Sources said that agreements have been reached with international energy companies and trading firms including Saudi Aramco Shell Vitol Trafigura BGN SOCAR PetroChina and BGN.

This year, 50-60 cargoes are needed to meet the demand. The country already bought 75 cargoes earlier in the year. The remaining cargoes will be delivered through the end of 2026.

The cargoes had a price premium between $0.70 and $0.75 over the price of gas at the Dutch TTF Hub, with a deferred payment period of nine months.

Cairo can defer the cargoes, and certain companies are able to supply Cairo with extra LNG cargoes as needed.

The Egyptian Natural Gas Holding Company and Egypt's Ministry of Petroleum did not respond immediately to a request for comment.

In the last two years, Egypt experienced rolling blackouts due to a lack of natural gas. In February, Egypt's gas production fell to its lowest level for nine years.

The most populous Arab nation in the world returned to its former status as a

net importer

Gas last year was bought

Dozens of cargoes

It also abandoned plans to be a supplier in Europe when its production plummeted.

S&P Global Commodity Insights data shows that Egypt bought 1,84 million tons of LNG in 2018. This is almost 75% its total by 2024. (Reporting and editing by Nina Chestney; Additional reporting from Mohamed Ezz in Cairo, Marwa Rashad)

(source: Reuters)