Egypt to Secure LNG Supplies with Shell, Saudi Aramco and Others

Egypt has agreed to buy 150-160 cargoes of liquefied natural gas (LNG) from firms including Shell, Saudi Aramco, and others. The total cost of the deal is estimated to be over $8 billion and will cover Egypt's power demand through 2026. The agreements were reached with several energy firms and trading houses, according to industry sources.

Egypt has agreed to purchase 150-160 cargoes of liquefied natural gas (LNG) from various energy firms and trading houses, with a total estimated cost of over $8 billion. The deal, announced on June 12, 2025, aims to meet Egypt's power demand through the end of 2026. The agreements were reached with several global energy companies, including Shell, Saudi Aramco, Trafigura, Vitol, BGN, SOCAR, and PetroChina, according to industry sources [1][2][3].

The LNG cargoes, priced at a premium of $0.70-$0.75 above the gas price at the Dutch TTF hub, are expected to cover both current and future demand. Between 50-60 cargoes will be used to meet this year's demand, with the remaining cargoes scheduled for delivery through 2026. The deferred payment terms provide Egypt with flexibility to manage its cash flow and respond to any changes in demand or supply [3][5].

Egypt's recent turnaround from an LNG exporter to a major importer is driven by a decline in domestic gas production and a surge in demand due to population growth and rising temperatures. The country's own gas output hit its lowest level in nine years in February, leading to rolling blackouts and a reliance on LNG imports [3][4].

The deal is part of Egypt's strategy to reduce its reliance on volatile spot markets and secure long-term energy supplies. It also reflects the growing interest of international energy companies in Egypt's gas market, particularly given the high global prices and Egypt's growing domestic shortfall [4][8].

However, the move to secure LNG cargoes comes at a time when Egypt is facing a foreign-currency crisis and a weakened pound. The increased energy imports are likely to put further pressure on the country's national budget, with Egypt's energy bill expected to rise to about $3 billion a month over the summer from July [4][8].

Egypt's Ministry of Petroleum and the Egyptian Natural Gas Holding Company (EGAS) have not yet responded to requests for comment on the deal. The Ministry of Petroleum and EGAS have been actively seeking gas supply contracts to meet Egypt's growing demand and stabilize the country's energy sector [3][7].

References:
[1] https://seekingalpha.com/news/4457652-egypt-to-buy-lng-from-shell-saudi-aramco-and-others---reuters
[2] https://www.linkedin.com/posts/mehdy-touil-5452028b_lng-egas-aramco-activity-7338853663240613888-s5FP
[3] https://www.marketscreener.com/quote/index/S-P-GSCI-NATURAL-GAS-INDE-46869167/news/Egypt-agrees-to-buy-up-to-160-LNG-cargoes-through-2026-sources-say-50225325/
[4] https://www.bloomberg.com/news/articles/2025-06-12/egypt-makes-lng-supply-deals-with-hartree-vitol-aramco-others
[5] https://www.tradingview.com/news/reuters.com,2025:newsml_L1N3SF0DW:0-egypt-agrees-to-buy-up-to-160-lng-cargoes-through-2026-sources-say/
[7] https://www.zawya.com/primarykeyword/PETROCHEMICALS
[8] https://www.watanserb.com/en/2025/06/10/egypt-plans-massive-lng-import-deal-to-avert-power-crisis/