Cairo – May 25, 2025: According to sources referenced by Reuters, Egypt is in talks to secure as many as 60 LNG cargoes ahead of the high-demand summer season.


With current international LNG rates, the procurement could amount to around $3 billion, posing a considerable financial burden amid the nation’s ongoing economic difficulties.


The move, involving negotiations with global trading companies and national energy entities, is intended to counteract a significant drop in domestic gas output and avoid major electricity outages.


In a move to address the situation, last week President Abdel Fattah El-Sisi urged officials to take proactive measures to ensure a steady electricity supply, emphasizing the importance of stabilizing power generation ahead of the hotter months.


According to an energy industry source speaking with Reuters, Egypt is also exploring the potential purchase of about 1 million tons of fuel oil. However, LNG remains the preferred option due to more manageable payment terms, the same source noted that fuel oil remains on the table should LNG prices rise sharply.


Data from S&P Global Commodity Insights shows that Egypt has already bought nearly 1.84 million tons of LNG this year—roughly 75 percent of its total for 2024.


Negotiations are reportedly underway with suppliers from Qatar, Algeria, and Saudi Arabia, as well as major global trading entities.


The situation is further complicated by reduced gas shipments from Israel’s Leviathan offshore field, where planned maintenance has disrupted flows, according to Reuters.


This cutback has led to partial or complete shutdowns at multiple fertilizer plants in Egypt, impacting one of the country’s key export sectors.


“My factory has been completely shut since Saturday,” one industry source told Reuters on condition of anonymity. “Others are only operating at reduced capacity.”


Israel supplies a significant portion of Egypt’s imported gas—between 40 percent and 60 percent, accounting for as much as a fifth of the country’s total consumption, according to data from the Joint Organizations Data Initiative (JODI).