Egypt LNG Cargo Costs Double to About $80 Million

Egypt is paying sharply more for imported liquefied natural gas as higher gas prices, freight and insurance expenses increase the cost of bringing LNG into the country.

MONTREAL (Oil Monster): Egypt is facing sharply higher costs for imported liquefied natural gas (LNG), with the price of an individual cargo now reaching about $80 million. According to Petroleum and Mineral Resources Minister Karim Badawi, the figure has doubled from around $40 million following the regional conflict involving Iran.

Why Egypt's LNG Import Costs Have Risen

The sudden jump in import costs is mainly on account of higher gas prices, increased freight and insurance expenses. Egypt has also increased LNG purchases to meet growing demand and compensate for lower domestic gas availability.

Natural Gas Demand Increased in July and August

Natural gas consumption rose nearly 12% in July and August, reaching approximately 7.28 billion cubic feet per day.

That compares with an average of about 6.45 billion cubic feet per day during the October-March period.

Egypt Expects Domestic Gas Production to Improve

Egypt was producing roughly 3.7 billion cubic feet of natural gas daily in mid-2026. Badawi expects production to improve to approximately 4.2 billion cubic feet per day during the current fiscal year.

Egypt Paid $6.1 Billion in Outstanding Energy Dues

The minister noted that relations with international energy companies have witnessed notable progress after Egypt paid about $6.1 billion in outstanding dues in June.

Badawi said the settlement of the arrears has helped the country prevent a sharper dip in production.

Refinery Utilisation Climbs Above 80%

Meanwhile, domestic refinery utilisation has climbed above 80%, up from 67%, helped by better crude supply.