Egypt Spends $5.8 Billion on LNG From $10.1 Billion Allocation
Key Facts
Egypt’s Ministry of Petroleum spent $5.8 billion on natural gas through October 6, from an estimated allocation of $10.1 billion for fiscal year 2026/27, according to a Reuters report published by Zawya. The figures come as the cost of securing imported fuel rises, while the Egyptian General Petroleum Corporation bought 6 high-sulfur fuel oil cargoes for delivery between November and December. Each cargo ranges from 90,000 to 100,000 metric tons, according to the report. Spending recorded through early October puts more than half of the annual allocation in use before the end of the fiscal year. Separately, the Ministry of Petroleum announced closing dates for an exploration tender covering 14 areas, split between EGAS and the Egyptian General Petroleum Corporation.
Reuters said Egypt’s LNG imports rose during the year to their highest level since it began in July, before signs of a decline emerged from August. An official document also forecast that the number of imported LNG cargoes would reach 184 in 2026, compared with 152 in the comparison period cited in the report. The forecast reflects Egypt’s continued reliance on foreign shipments to meet its gas needs, alongside rising import costs. In a statement published by Ahram Online in August, Petroleum Minister Karim Badawi said the cost of an LNG cargo had risen to about $80 million from about $40 million before the war. Badawi attributed the increase to gas prices, shipping costs and insurance.
Pressure from the gas bill coincided with higher domestic consumption during the summer months. Badawi said consumption rose by about 12% to nearly 7.28 billion cubic feet per day in July and August, compared with 6.45 billion cubic feet per day between October and March. The increase in summer demand creates greater needs for the supply system during a period of higher imported gas costs, according to figures cited by the minister. Meanwhile, fuel oil imports topped 640,000 tons in October and were nearly steady compared with September. Cumulative imports between January and October, however, reached 3.94 million tons, compared with 5.95 million tons over the same period in 2025.
Fuel oil purchases reflect a parallel effort to secure energy needs, with the six cargoes scheduled for delivery during the final two months of 2026. The ministry said the 2026 tender aims to attract investment to support domestic production, and that some of the offered areas are near existing fields and infrastructure, which could lower development costs and speed up the commissioning of new discoveries. The announcement set December 14, 2026, at noon Cairo time, as the deadline for bids to EGAS for 8 areas. For the six areas under the Egyptian General Petroleum Corporation, the submission deadline is November 11, 2026, at noon Cairo time. The deadline for the corporation’s areas therefore comes more than a month before the EGAS deadline.
In global markets, Reuters reported that the European benchmark natural gas contract reached its highest level since December 2022 during the reporting week, as LNG shipments in the Middle East remained disrupted and supply was tight. This comes as Egyptian import data show shipments peaked for the year in July, before signs of a decline emerged from August. The official forecast of 184 cargoes for 2026 puts annual import needs at the center of Egypt’s energy outlook. Badawi said in August that Egypt’s natural gas production was 3.7 billion cubic feet per day in mid-2026, and that he expected it to rise to about 4.2 billion during fiscal year 2026/27. In an earlier financial development, Ahram Online reported that the government completed repayment of its dues to foreign partners in June, after arrears had reached about $6.1 billion in previous years.