Egypt’s November LNG Import Budget Nears $1 Billion as Cargo Cost Exceeds $100 Million
Key Facts
Egypt’s allocation for liquefied natural gas imports in November is approaching $1 billion after the cost of a single cargo exceeded $100 million, according to a report published by EnterpriseAM, citing Asharq News on November 4. The government plans to receive about 10 cargoes this month, down from 12 in October. It also postponed five of the 15 cargoes it had contracted for until 2027, the report said. The figures reflect the extent of reliance on imports to meet domestic market needs at a time when cargo costs are rising. The cost of a single cargo had doubled from its September level, according to the same report.
The November bill comes within a large annual LNG budget: the Petroleum Ministry estimated its allocation at about $10.1 billion for the 2026/2027 fiscal year, which runs from July to June, according to an analyst who spoke to Reuters. Through October 6, the ministry had spent $5.8 billion on LNG. The analyst said prices had risen to levels above the estimates set in the budget. This early spending puts purchases for the remaining months of the fiscal year in the context of supply-cost pressures. The comparison between the annual allocation and spending recorded through early October shows how much of the budget imports had absorbed before the fiscal year ended.
Cargo demand coincides with fluctuations in domestic gas consumption across the seasons. Petroleum Minister Karim Badawi said consumption reached about 7.28 billion cubic feet per day in July and August 2026, compared with 6.45 billion cubic feet per day between October and March. Those levels represent a summer increase of about 12%, the minister said. Higher demand in the summer months determines the volume of supplies the country needs to meet consumption, while LNG purchases are being prepared according to market needs. The seasonal comparison shows that import demand is also linked to changes in domestic consumption over the year, alongside cargo prices.
The cost of LNG cargoes rose alongside higher gas prices and shipping and insurance costs, Badawi told Ahram Online. The minister put the cost of a cargo at about $80 million during the regional conflict, compared with about $40 million before it. This estimate differs from the cargo cost of more than $100 million in the November report, as each figure relates to a different period and context. The gap highlights changes in purchase costs across the periods covered by the reports, along with the factors the minister cited behind the increase. The November allocation, which is nearing $1 billion, remains tied to the number of cargoes to be received and their cost that month.
The extent to which domestic production can reduce the need for imports depends on the supply trajectory during the current fiscal year. Egypt’s natural gas production stood at 3.7 billion cubic feet per day in mid-2026, according to Ahram Online. Badawi expects production to rise to about 4.2 billion cubic feet per day during the current fiscal year. These are production figures, while consumption data measure market needs; comparing them therefore provides context for the volume of supplies required. The expected production level remains a subsequent development relative to the midyear figures, according to the minister’s estimate.
Egypt is also using fuel oil as part of its supply arrangements for the coming period. The Egyptian General Petroleum Corporation bought six high-sulfur fuel oil cargoes for delivery between November and December 2026, according to Reuters. Fuel oil imports exceeded 640,000 tons in October. Over the first 10 months of 2026, imports totaled 3.94 million tons, compared with 5.95 million tons in the same period of 2025, according to data cited by Reuters. The year-on-year decline in imports puts the new cargo purchases in the context of changing fuel oil volumes, alongside LNG purchases.