Egypt has announced temporary reductions in its liquefied natural gas (LNG) exports, effective from May, in response to anticipated power shortages during the forthcoming summer months.
This measure is aimed at bolstering gas availability domestically to address the escalating electricity demands amidst recurring power disruptions.
According to the Ministry of Electricity, the nation’s daily gas requirement stands at around 105 million m3, supplemented by 10,000 tons of diesel. Anticipated soaring temperatures during the summer of 2024 are expected to push this demand up to 135 million m3 of gas.
Eni CEO: Egypt Continues Energy Payments Amidst Economic Challenges
To mitigate the impact, daily power cuts of up to two hours per day have been reinstated across various governorates, resulting in an estimated annual saving of $1 billion.
These ongoing power cuts are a proactive measure taken in response to diminished foreign currency revenue from Suez Canal fees and tourism, as well as reduced production from the Zohra natural gas field. The objective, according to Energy Capital Power, is to safeguard essential currency reserves for fuel and imports.
In line with efforts to meet the heightened summer demand, Egypt is planning to import three LNG shipments per month from July to October 2024. This strategic move is expected to provide the country’s power stations with approximately 10 days’ worth of supply, bolstering resilience against potential shortages.
