Egypt and Qatar Forge Alliance to Bolster LNG Cooperation

Egypt and Qatar signed an agreement to enhance cooperation in LNG sales and imports. The deal includes supplying Egypt with up to 24 LNG cargoes next summer to meet increasing energy demands, amid declining domestic gas production. Egypt aims to diversify import sources and achieve self-sufficiency.

In a significant move to bolster energy collaboration, Egypt and Qatar have signed a memorandum of understanding to enhance LNG sales and imports. This agreement includes terms for supplying Qatari LNG shipments to key Egyptian ports Ain Sokhna and Damietta, as announced by Egypt's petroleum ministry on Sunday.

QatarEnergy has disclosed that the deal involves providing Cairo with up to 24 liquefied natural gas cargoes for the upcoming summer, supporting Egypt amid its efforts to diversify gas import sources and meet its growing energy demands. As the most populous Arab nation, Egypt has been striving to increase its domestic gas production.

Despite production declines since late 2022, Egypt remains determined to become a regional supply hub. The country's petroleum minister, Karim Badawi, reaffirmed plans for self-sufficiency in an official cabinet statement. The collaboration with Qatar is aimed at countering reduced gas production and easing reliance on costly imports.

(With inputs from agencies.)