Egypt has agreed to purchase LNG cargoes from Saudi Aramco, Trafigura, Vitol, Shell, and others to reduce reliance on volatile spot markets. This shift comes as local gas production declines while demand rises, turning Egypt from an LNG exporter into a long-term importer and tightening global markets.
This move aims to help Egypt revive its economy following a foreign currency crisis, with medium-term LNG agreements reducing its exposure to spot market volatility. However, increased gas demand is expected to raise Egypt’s energy costs to around $3 billion per month this summer, up from $2 billion last year. Reports indicate Egypt may purchase over 160 LNG shipments through June 2026.
