Egypt's LNG import bill has doubled amid regional conflict and declining domestic gas output, forcing the nation to defer shipments and pivot to fuel oil for power generation.
Egypt's LNG import bill doubled amid the war on Iran, while its gas output fell to 3.63 bcf/d in August and QatarEnergy extended force majeure on October 28. That combination tightens available LNG supply and supports natural gas prices, though Egypt deferring cargoes into 2027 may soften near-term demand.
The war on Iran has doubled what Egypt pays for imported LNG, while domestic gas output fell to 3.63 bcf/d in August.
QatarEnergy has kept LNG deliveries under force majeure since April and extended it on October 28.
Egypt faces a severe energy crunch as the war on Iran drives LNG import costs to double, forcing the government to defer cargoes into 2027. Domestic production has dropped to 3.63 bcf/d in August, prompting Cairo to burn fuel oil in power plants to manage the fiscal burden.
The war on Iran has doubled what Egypt pays for imported LNG, while domestic gas output fell to 3.63 bcf/d in August.
QatarEnergy has kept LNG deliveries under force majeure since April and extended it on October 28.