Egypt's Energy Bill Soars as Regional War Drives Up LNG Costs

Egypt's energy bill is under pressure due to rising global LNG prices and shipping costs. According to Petroleum Minister Karim Badawi, the cost of an LNG cargo has doubled to around $80 million from about $40 million before the regional war.

The country relies heavily on imported gas to meet its growing demand, with domestic consumption increasing by 12% during the summer months. Domestic natural gas production stands at 3.7 billion cubic feet per day (bcf/d), but is expected to rise to around 4.2 bcf/d this fiscal year.

The government aims to reduce its reliance on imported gas by investing in renewable energy sources, with a target of 42% of Egypt's energy mix coming from renewables by 2032. Expanding wind and solar capacity could help reduce the country's dependence on LNG imports.