Egypt’s Ministry of Petroleum and Mineral Resources has been sending shipments of liquefied natural gas to the Energos Force floating storage and regasification unit in Jordan since early April, a ministry source told Al Manassa. The deliveries are a step toward channeling between 12 and 13 billion cubic feet of gas back into Egypt’s national grid through the Arab Gas Pipeline.
The source, who is familiar with the ministry’s production portfolio and spoke on condition of anonymity, stated that the ministry aims to send four LNG shipments totaling 600,000 cubic meters. In return, Egypt will receive between 400 and 500 million cubic feet (mmcf) of regasified gas daily to be injected directly into the national grid. This is part of an emergency government plan to secure domestic market needs in light of current regional tensions.
All four cargoes will be dedicated to conventional power plants, which consume about 3 billion cubic feet (bbcf) of gas daily. Consumption has eased under a government rationalization program that is saving roughly 500 million cubic feet a day, the source said.
According to the source, the domestic natural gas gap currently stands at approximately 2.2 bbcf per day. Local production averages between 4.1 and 4.2 bbcf, while daily consumption exceeds 6.3 bbcf.
To bridge this gap, the ministry has secured five regasification units in various locations. These include the joint FSRU in Jordan, as well as units at sites on the Mediterranean coast and Ain Sokhna port.
The ministry’s action follows months of volatility in regional energy supplies. In February, Israel halted natural gas flows to Egypt coinciding with the joint offensive launched with Washington against Tehran.
While Israel later resumed gas supplies on a limited scale, and flows returned to pre-war levels earlier this month, global energy prices have seen unprecedented surges. Brent crude surpassed the $100 per barrel mark due to war tensions before recently stabilizing around $98.
These tensions, coupled with the petroleum import bill rising to $19.4 billion in the 2024-2025 fiscal year, prompted the Egyptian government to enact strict measures. It decided on the early closure of commercial premises to conserve electricity, while the Ministry of Industry raised the price of gas supplied to fertilizer plants by approximately 21%.
Additionally, the Ministry of Petroleum approved an increase in gasoline prices by 3 Egyptian pounds per liter. This was followed by a hike in electricity tariffs by 16% for some households and 20% for commercial activities.
In parallel, Egypt is reviewing an offer from AD Ports Groupto lease crude oil and petroleum storage facilities on the Red Sea coast. The talks underscore the region’s growing role as an alternative energy corridor amid disruptions to navigation through the Strait of Hormuz. Negotiations are expected to conclude by the end of the second quarter, covering the number of facilities, their locations, and lease terms.
