Egypt has announced temporary cuts to its liquefied natural gas (LNG) exports starting from May to address power shortages anticipated during the summer months.
The move aims to increase gas availability within the country to meet rising electricity demands, amidst recurring power outages.
The Ministry of Electricity estimates a daily requirement of approximately 105 million m3 of natural gas, along with 10,000 tons of diesel, with demand expected to surge to 135 million m3 of gas as temperatures rise during the summer in 2024.
Daily power cuts of up to two hours per day have been reinstated across several governorates, saving an estimated $1 billion annually.
Ongoing power cuts is a measure taken as a result of decreased foreign currency revenue from Suez Canal fees and tourism – as well as reduced production from the Zohra natural gas field – aimed at safeguarding essential currency reserves for fuel and imports.
In line with efforts to meet summer demand, Egypt plans to import three LNG shipments per month from July to October 2024. This will provide power stations in the country approximately 10 days’ supply.
