Egypt seeks four LNG cargoes for Feb-Mar delivery

Egypt has issued a tender seeking four cargoes of liquefied natural gas (LNG) for delivery between February and March, two trading sources told Reuters.

The most populous Arab country has returned to being a net importer of natural gas, buying dozens of cargoes this year and abandoning plans to become a supplier to Europe after a steep decline in domestic gas output largely because of declining production from the Zohr gas field.

The tender was issued by the Egyptian General Petroleum Corporation (EGPC) and closes on Jan. 27. It is smaller than those issued in 2024.

Egypt was expected to issue a tender seeking up to 20 LNG cargoes to cover demand for the first quarter of 2025 but has deferred some previously purchased cargoes for January delivery.

LNG spot prices have recently risen to about $14.00 per million British thermal units (mmBtu) from around $12/mmBtu when Cairo started tendering for LNG, raising the cost of new cargoes at a time when the country is suffering a foreign currency crunch.

Cairo has managed to agree up to 15 cargoes through direct talks with companies and portfolio players, a third industry source said without providing details of the sellers or duration of the deals.

Three sources told Reuters in November that Cairo was in talks with U.S. and other foreign companies to purchase long-term LNG volumes as it seeks to cut its reliance on more costly spot market purchases to meet power demand.

Egypt's domestic gas output is expected to drop by a further 22.5% by the end of 2028, data from consultancy Energy Aspects found. Meanwhile, analysts expect the country's power consumption to increase by 39% over the next decade.