Egypt’s plans to export oil to the European market have been hit by a drop in oil production from the Zohr gas field, coupled with rising electricity consumption, pushing supplies to a seven-year low by September 2024.
Egypt has since signed a $3 billion deal with Shell and TotalEnergies to meet its energy needs by 2025.
Under the deal, Egypt is expected to receive 60 shipments of liquefied natural gas (LNG).
LNG shipments are expected to cover most of Egypt’s energy needs this year.
However, LPG consumption has increased in the summer months as air conditioning has led the country to increase its purchases of LNG.
However, Egypt is set to face challenges as spot market gas prices have risen, making imports more expensive and financial challenges due to a lack of foreign currency needed for purchases.
Experts predict gas production could fall by 22.5% by 2028, while electricity demand could increase by almost 40% over the next ten years.
