Egypt's LNG Import Bill Doubles Amid Regional Disruptions

Egypt's natural gas production has been unable to keep pace with rising domestic demand, forcing the country to rely on expensive imported liquefied natural gas (LNG). Minister of Petroleum and Mineral Resources Karim Badawi said that the cost of an LNG cargo had doubled to around $80 million due to higher gas prices combined with rising shipping and insurance costs amid regional disruptions.

The country's average gas production has stood at around 3.8 billion cubic feet per day (bcf/d), while domestic demand is roughly 6.2 bcf/d, increasing to about 7.2 bcf/d during the summer months. To bridge this gap, Egypt relies on LNG imports.

The government aims to increase gas production to around 4.2 bcf/d by the end of the current fiscal year and is implementing an integrated strategy to strengthen energy security, boost domestic production, and maximize the use of state resources and infrastructure.