Egypt turns to Qatar for LNG as gas production slips

Egypt and Qatar have signed a memorandum of understanding to strengthen cooperation in liquefied natural gas (LNG) sales and imports, Egypt’s petroleum ministry said on Sunday.

Under the agreement, Qatari LNG shipments will be supplied to Egypt through the Ain Sokhna and Damietta ports, helping Cairo secure fuel supplies ahead of the peak summer demand period. QatarEnergy said the deal includes the delivery of up to 24 LNG cargoes to Egypt over the coming months.

The agreement comes as Egypt, the Arab world’s most populous nation, works to boost domestic gas production while diversifying its import sources to meet rising energy consumption.

Gas output has been under pressure since late 2022, complicating Egypt’s ambitions to position itself as a regional energy hub. The production decline has forced the country to plan for increased imports from Israel and Cyprus, alongside more expensive spot LNG cargoes.

According to data from the Joint Organizations Data Initiative, Egypt produced 3,635 million cubic meters of natural gas in October last year, slightly up from 3,525 million cubic meters in September, but still below the 3,851 million cubic meters recorded in October 2024.

Despite the challenges, Petroleum Minister Karim Badawi said last week that Egypt remains committed to achieving self-sufficiency in oil and gas, according to a cabinet statement.