The Egyptian Natural Gas Holding Company (EGAS) is negotiating with three international companies to sign long-term liquefied natural gas (LNG) import contracts, a source familiar with the import portfolio at the Ministry of Petroleum told Al Manassa. The agreements are intended to secure domestic supply amid rising demand and volatility in global energy markets.
The source, who requested anonymity because they were not authorized to speak to the media, said the negotiations involve two US companies and one European company. Talks are currently focused on reaching an agreement on the final price per million British thermal units (MMBtu) and the volumes to be supplied.
The Ministry of Petroleum aims to contract for the supply of around 18 cargoes per month during the summer to meet domestic demand, particularly from the electricity and industrial sectors, the source said. The volume is expected to fall to 15 cargoes per month during the winter as consumption declines.
The source added that the ministry’s most recent long-term LNG import contract was signed with a US company in November last year.
At the end of last year, Egypt agreed to purchase around 80 LNG cargoes from US company Hartree Partners in a deal worth nearly $4 billion, with deliveries set to begin in 2026, according to Reuters.
LNG prices on global markets currently range between $16–18 per MMBtu, while EGAS is seeking to secure prices below prevailing market levels through the ongoing negotiations, The source said.
The ongoing war in the Middle East has cast a shadow over global energy markets and affected LNG trade flows, particularly cargoes originating from the Gulf region, prompting the ministry to expand its long-term contracts to reduce the risk of supply disruptions. Recent military tensions have contributed to raising global LNG prices as concerns over supply security and shipping through key maritime routes have intensified.
According to the source, the Ministry of Petroleum currently relies on imports to meet around 40% of domestic natural gas demand, including gas imported from Israel. Domestic production currently ranges between 3.8–3.9 billion cubic feet per day, compared with average consumption of around 6.5 billion cubic feet per day.
