Egypt is in talks with energy majors including Shell, TotalEnergies, and BP to buy 15 – 18 cargoes of LNG per month for at least three years, three trading and industry sources familiar with the matter told Reuters.
The talks come as Egypt's domestic production struggles to keep pace with rising demand and as global LNG markets remain tight during the Iran conflict, which has curtailed shipping through the Strait of Hormuz and increased competition among buyers seeking to secure supplies.
Two of the sources said talks are ongoing with companies including Shell, ?TotalEnergies, BP, and commodities trader, Hartree Partners.
There is “a strong will to work with Americans”, a third source said.
The duration of the deals could be three to five years, but they are yet to be finalised, the sources added.
Egypt's petroleum ministry and TotalEnergies did not immediately respond to a Reuters request for comment. Shell, BP and Hartree Partners declined to comment.
While Egypt's economy has remained broadly stable despite the US-Israeli war with Iran, energy imports have ballooned.
Egypt's natural gas import bill had nearly tripled, rising from about US$560 million before the conflict to roughly US$1.65 billion for the same volumes in March.
The new import deals could cost the most populous Arab country between US$8 billion – US$11 billion annually, based on Reuters calculations of recent deals priced at a premium of about US$1.5 above TTF, the European gas price ?benchmark.
This would be an additional challenge for the government, which is already grappling with high debt that eats up the majority of its budget, and a national currency that is barely holding since the regional conflict began.
Every dollar spent on LNG and fuel imports is money no longer available for budget spending, investment, or reserves accumulation.
“Egypt's ongoing negotiations for medium-term LNG supply, alongside the expansion of existing and planned pipeline gas agreements, reflect efforts ?to reduce exposure to volatile spot market procurement amid continued geopolitical uncertainty,” said Aly Blakeway, Head of Atlantic LNG at S&P Global Energy. “That uncertainty includes the Russia-Ukraine conflict and tensions involving the US and Iran.”
Egypt imported a total of 985 billion ft3 of gas ?between July 2025 – June 2026, including from Israel and other LNG cargoes.
Its imports are estimated to reach 1081 billion ft3 between July 2026 – June 2027, according to official documents seen by Reuters.
The higher imports reflect a continued decline in natural gas production, ?despite repeated pledges and clearing foreign companies' arrears.
Monthly production averaged under 4.4 billion ft3/d in fiscal year 2025 – 2026, and is expected to dwindle further to 4.2 billion ft3/d in the current fiscal year.