Egypt LNG Costs Double as Domestic Natural Gas Output Declines

The cost of liquefied natural gas imports to Egypt has doubled as a consequence of the war involving Iran, Oilprice reported. To reduce energy expenditures, Cairo is deferring planned LNG cargoes into 2027 and increasing the use of fuel oil in its domestic power generation facilities. [1][5]

The surge in import costs coincides with a continued decrease in domestic energy production, according to Oilprice. Egypt's natural gas output fell to 3.63 billion cubic feet per day in August, driven by a faster depletion rate in mature fields relative to the arrival of new production wells. [1]

To address the drop in production, the Egyptian petroleum ministry extended the bidding deadline for 14 oil and gas exploration blocks, Oilprice reported. The submission deadline was moved to December 14 following requests from interested energy companies. [1]

Africa Oil+Gas Report noted that Egypt's petroleum minister recently inspected natural gas network control centres as the government manages the challenges of diminishing domestic gas production. [3]