Egyptian Minister of Petroleum and Mineral Resources Expects LNG Exports to Resume

Seasonal Factors Cause Halt in LNG Exports

Egyptian Minister of Petroleum and Mineral Resources Tarek El Molla told Reuters today Wednesday that Egypt did not export liquefied natural gas in June due to seasonal factors including high domestic consumption, adding that he expects exports to resume this month.

Lower Domestic Production Contributed to Export Halt

Trade sources told Reuters they believe the halt in exports in June was the result of lower domestic production.

Summer Demand for Gas Increases

But El Molla said there was no “special reason” and added that high summer temperatures increase demand for gas for cooling purposes.

Egypt’s Ambition to Become an Energy Hub

“Market prices are very low… (besides) we don’t usually export (gas) in summer due to high domestic demand due to hot weather,” Al-Mulla said on the sidelines of an oil conference. and gas industry.

Egypt, the largest Arab country by population, began importing gas from Israel in 2020 as part of its ambition to become an energy hub in the region, where it can, thanks to its strategic position, supply domestic and Israeli gas after it has been liquefied. to the countries of the Middle East, Africa and Europe.

Last year, Egypt signed a framework agreement with the European Union and Israel to expand gas exports at a time when Europe was seeking an alternative to Russian gas after the outbreak of war in Ukraine.

Egypt went from being a net importer of gas to an exporter in late 2018 thanks to a rapid increase in its supply, helped by the discovery of the largest gas field in the Mediterranean.

Egyptian natural gas exports hit a record high of 8 million tons in 2022.

Exports are expected to reach 7.5 million tons this year, with most of it going to Europe and Turkey, with the rest going to Asian markets.

Egypt’s LNG export terminals on the Mediterranean coast are capable of handling 12 million tons per year, and the country aims to reach that figure by 2025, making it one of the largest LNG exporters.