Egypt is negotiating multi-year liquefied natural gas (LNG) supply agreements with some of the world’s largest energy companies as it seeks to strengthen energy security amid declining domestic gas production and heightened geopolitical uncertainty.
According to Reuters, Egypt is in discussions with major energy firms including Shell, TotalEnergies and BP to purchase between 15 and 18 LNG cargoes each month under agreements that could run for at least three years.
The proposed deals come as demand for natural gas continues to outpace domestic production, while ongoing tensions in the Middle East have tightened global LNG markets and intensified competition among importing countries.
The negotiations reflect the government’s broader energy strategy under Minister of Petroleum and Mineral Resources Karim Badawi, who has been overseeing efforts to secure reliable gas supplies while supporting Egypt’s long-term energy needs.
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According to Reuters, the proposed LNG agreements could cost Egypt between $8 billion and $11 billion annually based on recent market pricing.
Reuters reported that Egypt’s natural gas import bill nearly tripled, rising from approximately $560 million before the regional conflict to about $1.65 billion in March for similar import volumes.
Industry sources told Reuters that negotiations are continuing with Shell, TotalEnergies, BP and commodities trader Hartree Partners, although the agreements have not yet been finalised.
Aly Blakeway, Head of Atlantic LNG at S&P Global Energy, told Reuters that medium-term supply agreements would help Egypt reduce its exposure to volatile spot market purchases while navigating ongoing geopolitical uncertainty.
What This Means For Africa
Egypt’s latest negotiations demonstrate the growing importance of long-term energy planning as African countries respond to changing production patterns and an increasingly competitive global gas market.
For Petroleum and Mineral Resources Minister Karim Badawi, securing dependable LNG supplies has become an important part of maintaining energy stability while supporting households, industries and economic growth.
According to Reuters, Egypt imported an estimated 985 billion cubic feet of gas between July 2025 and June 2026, with official documents indicating imports could increase to about 1,081 billion cubic feet during the following year.
The report also noted that domestic natural gas production has continued to decline despite efforts to encourage investment and settle outstanding payments owed to international energy companies.
Egypt’s experience highlights the balancing act facing many African economies as they seek to meet rising energy demand while managing public finances, attracting investment and responding to global market disruptions.
As governments across the continent pursue energy security alongside economic development, long-term supply agreements and continued investment in domestic production are likely to remain central to national energy strategies.
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Image Credit: amchamegypt
