Egypt Expands LNG Import Deals Amid Economic Strain

Egypt has signed over $8 billion in agreements with global energy firms—including Saudi Aramco, Shell, Trafigura, Vitol, BGN, SOCAR, PetroChina, and Hartree Partners—to import 150-160 LNG cargoes through 2026. The deals address Egypt's declining domestic gas output and rising electricity demand, marking a shift from exporter to importer while aiming to mitigate rolling blackouts. Contracts are priced at a premium to European gas benchmarks, with deferred payment options to support Egypt during its foreign currency crisis. The country's energy import bill is projected to surge to $3 billion per month this summer, up from $2 billion last year, heightening pressure on state finances. Egypt is upgrading its gas infrastructure to accommodate increased imports and is seeking assistance from the IMF to navigate ongoing economic challenges. These medium-term contracts are intended to reduce exposure to volatile spot markets but highlight Egypt's broader economic and energy sector struggles.