KEY POINTS
- Egypt and Qatar signed a memorandum of understanding to increase LNG imports, including up to 24 cargoes this summer.
- Domestic gas production in Egypt has declined, prompting reliance on imports from Israel, Cyprus, and LNG shipments.
- Egypt continues pursuing oil and gas self-sufficiency while diversifying energy sources through international partnerships.
A memorandum of understanding has been signed by Egypt and Qatar to enhance their cooperation in the sales and import of LNG.
The Egyptian petroleum ministry said on Sunday that the agreement includes plans to supply Qatari LNG shipments to Egypt’s Ain Sokhna and Damietta ports.
According to QatarEnergy, the deal may enable Cairo to receive up to 24 LNG shipments in the coming summer. The agreement is made as Egypt looks for dependable energy sources to satisfy rising demand.
Domestic Production Declines
The most populous nation in the Arab world, Egypt, has experienced a slowdown in its own gas production.
According to data from the Joint Organisations Data Initiative, output decreased from 3,851 million cubic meters in October 2024 to 3,635 million cubic meters in October of last year.
Egypt’s aspirations to become a hub for regional energy supply have been strained by the decline. To close the gap, officials have resorted to increasingly costly LNG shipments and imports from Cyprus and Israel.
Petroleum Minister Karim Badawi informed the cabinet last week that Egypt hopes to become oil and gas self-sufficient despite the shortfall.
The agreement with Qatar is in line with larger initiatives to secure dependable energy and diversify supply before summer demand peaks.
Egypt’s current energy strategy strikes a balance between securing imports from several foreign partners and increasing domestic production.
In order to guarantee consistent supply and lessen susceptibility to regional market swings, officials have underlined the significance of alliances like this one with Qatar.
