Egypt is negotiating with major international energy companies, including Shell, TotalEnergies, BP and Hartree Partners, to secure 15–18 liquefied natural gas (LNG) cargoes per month under contracts lasting at least three years, according to industry and trading sources.
The talks come as the country faces declining domestic natural gas production, rising electricity demand and tighter global LNG supplies amid disruptions to shipping through the Strait of Hormuz during the Iran conflict. The proposed agreements are aimed at reducing Egypt’s reliance on volatile spot-market purchases and improving long-term energy security.
Sources said the contracts could run for three to five years, although negotiations remain ongoing and no final agreements have been reached. Egypt’s petroleum ministry and the companies involved have not commented publicly, while Hartree Partners declined to comment.
Egypt’s natural gas import costs have surged sharply, with its monthly import bill rising from about $560 million before the regional conflict to roughly $1.65 billion for the same import volumes in March. Based on current pricing, the planned LNG deals could cost between $8 billion and $11 billion annually.
The higher import bill poses an additional strain on Egypt’s finances as the government continues to manage high debt levels and pressure on its currency. Analysts say the long-term supply strategy is intended to shield the country from geopolitical risks linked to conflicts involving Iran, Russia and Ukraine while ensuring stable fuel supplies.
Official documents seen by Reuters show Egypt imported 985 billion cubic feet of gas between July 2025 and June 2026, with imports expected to rise to 1,081 billion cubic feet in the current fiscal year. Meanwhile, domestic gas production is forecast to decline further to about 4.2 billion cubic feet per day, reinforcing the country’s growing dependence on imported LNG.