Energy Policy & Regulation

Egypt is reportedly planning to ramp up liquefied natural gas (LNG) imports by the end of the decade, as domestic production struggles to keep up with surging demand. Despite plans to expand infrastructure with new floating LNG import terminals and a potential long-term supply deal with Qatar, import volumes are expected to surpass the country’s previously set targets through 2028, according to a report by Bloomberg.

This shift highlights mounting energy challenges, with Egypt now seen as unlikely to meet its 2027 goal of resuming gas exports. The nation’s LNG and petroleum import bill is projected to rise sharply—from $12.5 billion in 2024 to $20 billion in 2025. Experts suggest the growing LNG shortfall will become one of the most significant pressures on Egypt’s current account and dollar reserves for years to come.

Meanwhile, Egypt is working to diversify its energy sources and revive domestic gas output. Notably, the country targets activating its first nuclear reactor in 2028 and continues to open its energy sector to international investment. In August, Egypt is expected to award new gas exploration contracts to foreign companies as part of a fresh bidding round, which has already attracted considerable interest.

Recent developments underscore this momentum. Kufpec Egypt, a subsidiary of Kuwait Foreign Petroleum Exploration Company, and Shell Egypt recently made a final investment decision to develop the Mina West gas field. With proven gas reserves estimated at 2.2 trillion cubic metres, Egypt ranks sixth in the Arab world, behind Qatar, Saudi Arabia, the UAE, Algeria, and Iraq, according to the Arab Energy Organization.