Egypt seeks 20 LNG cargoes for winter demand as gas crisis worsens, sources say
By Marwa Rashad
LONDON, Sept 6 (Reuters) -Egypt has issued a tender seeking 20 cargoes of liquefied natural gas (LNG) to cover demand for power during winter in the face of a steep decline in domestic gas output, three trading and industry sources said on Friday.
This is the first time Egypt has issued a tender to cover winter demand since 2018.
The most populous Arab country has returned to being a net importer of natural gas this year, buying more than 30 cargoes to cover summer demand and reversing its position as an exporter in recent years as part of plans to become a reliable supplier to Europe.
The tender issued by the Egyptian General Petroleum Corporation (EGPC) closes on Sept. 12. It is seeking 17 cargoes for delivery between Oct. 4 and Nov. 29 to its floating terminal in the Red Sea port of Ain Sukhna and three cargoes for delivery to Aqaba port in Jordan within the same period.
Egypt’s domestic gas output plummeted to a six-year low in May, down about 25% from its 2021 peak, and is expected to fall by a further 22.5% by the end of 2028, consultancy Energy Aspects said.
Meanwhile, The country's power consumption is expected to jump by 39% in the next decade.
Saudi Arabia and Libya have financed the purchase of gas cargoes worth at least $200 million to help Egypt to contend with a deepening energy crisis, sources told Reuters this week.
Reporting by Marwa Rashad
Editing by David Goodman
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