Egypt’s Idku liquefied natural gas (LNG) plant has begun liquefying two cargoes for export to Europe this week, totaling nearly 300,000 cubic meters, as Cairo seeks to generate hard currency and ease pressure on foreign debt obligations, a source familiar with the matter said.
The source, who spoke to Al Manassa on condition of anonymity, said the ministry has decided to export two shipments in February, one for Shell and Petronas, and another that may be for Total.
The first shipment is due to head to the European market within a week, while the second will be exported from the Idku plant in the last week of February, the source said.
The two shipments are expected to bring in about $100 million, according to the source, funds which will go toward paying part of EGAS’ debts to partners after it took their share of gas produced from fields under its control.
Egypt resumed LNG exports in October 2025 with a shipment to Italy after a lengthy halt, followed by additional cargoes, including one on Jan. 26 for Shell and Petronas.
The source said EGAS is continuing to secure exportable natural gas volumes, taking advantage of declining domestic consumption, especially at conventional power plants, whose gas consumption has fallen by about 800 million cubic feet per day during the current winter months.
In January, a government source told Al Manassa that the Ministry of Petroleum was planning to export about 22 billion cubic feet of natural gas to Lebanon and European countries during January and February.
Current natural gas production stands at about 4.2 billion cubic feet per day, down from about 6.6 billion cubic feet per day in 2018-2019, after development plans stalled in 2021, leading to a production drop of more than 1 billion cubic feet per day, the source estimated.
To reverse the decline, the government is seeking to introduce new investment incentives to encourage foreign partners to inject dollar-denominated capital and increase output, with the aim of restoring production levels over the coming two years.
Paying outstanding dues to international companies and negotiating pricing mechanisms for new production are key components of that strategy, the source added.
