Egypt has secured agreements worth about $3 billion with Shell and TotalEnergies to import 60 cargoes of liquefied natural gas (LNG) in 2025, three industry sources said. The deal comes as the country faces declining domestic gas production and rising energy demand.
Egypt, once a gas exporter, became a net importer again in 2023 after a sharp drop in output. Domestic gas supplies fell to a seven-year low in September 2024, mainly due to lower production from the Zohr gas field and increased power consumption, according to data from the Joint Organisations Data Initiative.
The 60 cargoes are expected to cover most of Egypt’s demand for the year, sources said. Shell declined to comment, while TotalEnergies and Egypt’s petroleum ministry did not immediately respond to requests for comment. In November, Egypt was reportedly in talks with U.S. and other foreign firms to secure long-term LNG supplies and reduce reliance on expensive spot market purchases.
Egypt has been purchasing LNG cargoes on the spot market to meet peak summer demand, often paying a premium of $1-$2 per million British thermal units (mmBtu). Spot prices have increased in 2025, averaging over $14/mmBtu, up from around $12/mmBtu when the country began its latest LNG tenders.
The government issued a tender in January seeking four LNG cargoes for delivery between February and March and may issue another later this year, depending on demand and market conditions.
