Egypt has delayed the receipt of several liquefied natural gas (LNG) cargoes this month as lower electricity consumption during cooler weather eases the country’s immediate energy needs. The postponements, confirmed by sources familiar with the matter, come after Egypt’s earlier surge in LNG imports to counter power shortages during the summer heat.
Shipments initially planned for this quarter are being rescheduled for later dates, though the move highlights Egypt’s financial burden in maintaining LNG imports. The country has faced challenges, including reduced Suez Canal revenue as commercial ships divert away from the waterway due to Houthi attacks in the Red Sea.
Domestic Gas Production Declines
The North African nation’s domestic gas production has also fallen sharply, with output in September down 19% year-on-year to 3.8 billion cubic meters, according to the Joint Organizations Data Initiatives. This shortfall drove higher LNG imports during the summer, although demand has since cooled.
LNG Terminal Speculations Dismissed
Speculation about technical issues at Egypt’s floating LNG terminal, Hoegh Galleon, or Jordan’s Energos Eskimo terminal—used for pipeline imports into Egypt—has been dismissed. Officials have clarified there are no faults with these facilities.
Impact on LNG Market
The deferment offers some relief to global LNG markets by freeing up cargoes for European buyers, where cold weather is driving up demand and prices. However, two vessels are currently idling near Ain Sokhna, awaiting unloading.
Despite Egypt’s pause in imports, the nation has not exported any LNG since April, signaling a continued reliance on imports to meet its energy needs. Whether the current delays will impact Egypt’s procurement plans for the first quarter remains unclear.
Officials from Egypt’s energy ministry have yet to comment on the developments.
