An Egyptian delegation will visit Germany this month to finalize contractual terms for the unit that’s currently at the Mukran terminal on the Baltic Sea, the Oil Ministry in Cairo said in a statement.
The North African nation, typically an exporter of LNG, last year turned to imports to address crippling power outages during a scorching summer. Egypt’s emergence as a buyer puts it in competition with Europe, which is also purchasing more of the fuel to make up for lost Russian piped supplies.
The contract under discussion would see the floating German unit brought to the Egyptian coast, the ministry said, without giving a timeframe. Also under discussion is a separate German plan to buy Cypriot gas flows that are set to pass through Egypt’s liquefaction infrastructure, according to the statement.
Egypt has sought to secure both spot and longer-term gas supplies to stem shortages. The country last year leased a floating LNG import terminal at its Ain Sokhna port on the Red Sea. Another facility will arrive from neighboring Jordan and start running in mid-2025. Egypt is also discussing leasing one of Turkey’s floating terminals and has held talks with Italy’s Eni SpA to build a new facility.
Rising electricity demand and a sharp decline in its own gas output have turned Egypt into a net importer. A foreign currency crunch has also stymied government efforts to repay arrears to foreign energy companies, hampering investment in production. The country now has a plan to pay the dues monthly, and hopes to return to exporting the fuel by the end of 2027.
(Bloomberg, March 12, 2025)