Egypt is expected to resume imports of Qatari liquefied natural gas (LNG) in the third quarter of this year, starting with seven shipments and rising to 24 by year-end, according to a source familiar with the Petroleum Ministry’s gas import file.
The resumption follows a current pause linked to tensions in the Red Sea caused by the US-Israeli war against Iran, the source told Al Manassa, speaking on condition of anonymity.
The source said imports depend on Qatar restoring LNG production to normal levels and on calmer conditions in the Red Sea. Qatari cargoes would help secure part of the gas supply needed to run Egypt’s power plants during the summer.
Egypt has increased LNG purchases from European and US markets to offset the suspension of Israeli gas supplies since the start of the war. Those supplies, previously estimated at about 1 billion cubic feet per day, have recently resumed at only about 50 million cubic feet per day.
In January, Egypt signed a memorandum of understanding with Qatar to expand co-operation in LNG sales and imports as well as other energy sectors.
Earlier, on Aug. 12 last year, Egypt amended its agreement to import Israeli gas, adding 130 billion cubic metres to contracted volumes and raising the expected value of revenues for Tel Aviv to $35 billion. The deal also extended supply until 2040.
The source said Iranian attacks on Gulf states and the closure of the Strait of Hormuz forced QatarEnergy to halt LNG production, triggering panic in global markets as supplies were disrupted under force majeure.
Separately, the Petroleum Ministry plans to regasify three LNG shipments in Jordan with a total cargo of 450,000 cubic metres, equivalent to about 9.5bn cubic feet of natural gas.
The shipments, to be received this month from US and European companies, were contracted at pre-war prices of $12 per million British thermal units, plus $2 covering shipping and regasification costs.
Another source at Egyptian Natural Gas Holding Company (EGAS) told Al Manassa on Sunday that LNG contract prices had surged about 66% in recent days due to turmoil in energy markets and the disruption of oil and gas shipping through the Red Sea. Brent crude prices have also climbed above $100 a barrel.
