Egypt imports LNG for first time in 6 years to avert summer shortage

Egypt recently procured a shipment of liquefied natural gas and is seeking to import more to preempt a potential scarcity and the risk of blackouts during the upcoming summer, as reported by Bloomberg.

Summers witness a surge in energy demand as people strive to combat the scorching heat by running air conditioners at full capacity. Last summer, Egypt grappled with recurrent blackouts amidst temperatures exceeding 35°C, making it the hottest summer on record. Experts predict that 2024 could bring even higher temperatures.

This procurement signifies a shift in policy for Egypt. It had largely ceased LNG imports in 2018, following increased output from the Zohr gas field, consequently positioning Egypt as a prominent LNG exporter. However, domestic output has reportedly dwindled to its lowest levels in years, prompting Egypt's pursuit to bolster its supplies.

The current market conditions are favorable for procurement, with European prices down by 20% and inventories abundant, as Bloomberg reports.

Egypt finds itself in a financially robust position, with an anticipated combined bailout of $57 billion from the UAE, EU, World Bank, and IMF.