Egypt's LNG Import Costs Soar to $80 Million Per Cargo Amid Regional War

The cost of importing liquefied natural gas (LNG) to Egypt has doubled to around USD 80 million per cargo due to higher gas prices, shipping and insurance costs.

This increase comes as summer demand for electricity rises in the country. According to Petroleum and Mineral Resources Minister Karim Badawi, the cost of each imported LNG cargo has doubled since the outbreak of the regional war involving Iran, from roughly USD 40 million to around USD 80 million.

Egypt is importing additional LNG to cover a wider gap between domestic production and consumption. Domestic natural gas production stood at around 3.7 billion cubic feet per day in mid-2026, but it is expected to rise to about 4.2 billion cubic feet per day during the current fiscal year.

The government's efforts to repay arrears owed to foreign oil and gas partners have helped limit the decline in production. In June, around USD 6.1 billion was repaid, which has supported increased crude oil supplies to local refineries, resulting in a refinery utilisation rate above 80%.