Egypt Doubles Down on LNG Imports Amid Production Decline

Egypt has contracted to import about 230 shipments of liquefied natural gas (LNG) during the current fiscal year 2026-2027, a nearly 24% increase from the previous fiscal year. The expected LNG import bill for the current fiscal year is approximately $11.5 billion, compared to $6.8 billion in 2025-2026.

The average cost per shipment has risen to about $50 million, up from around $40 million previously. This increase in import costs can be attributed to the rise in global gas prices due to geopolitical tensions in the region and a decline in Egypt's domestic natural gas production.

Egypt plans to import approximately 18.7 million tons of natural gas during the current fiscal year, with an estimated local demand of about 7 billion cubic feet per day. The country faces a gap between natural gas production and consumption, which is around 6.2 billion cubic feet per day under normal circumstances.