Egypt and Qatar have signed a memorandum of understanding to strengthen cooperation in liquefied natural gas (LNG) sales and imports, including the supply of Qatari cargoes to Egypt’s Ain Sokhna and Damietta ports, Egypt’s petroleum ministry said on Sunday.
QatarEnergy said the agreement provides for the supply of up to 24 LNG cargoes to Egypt during the upcoming summer, helping Cairo meet peak seasonal demand.
The deal comes as Egypt, the Arab world’s most populous country, seeks to shore up energy supplies amid declining domestic gas output and rising consumption. Natural gas production began falling in late 2022, weighing on Egypt’s ambitions to position itself as a regional energy hub and forcing it to plan for increased imports from Israel and Cyprus, alongside costly spot LNG purchases.
According to data from the Joint Organisations Data Initiative (JODI), Egypt produced 3,635 million cubic metres of gas in October last year, slightly higher than 3,525 million cubic metres in September, but down from 3,851 million cubic metres in October 2024.
Despite the recent decline, Petroleum Minister Karim Badawi said last week that Egypt remains committed to achieving self-sufficiency in oil and gas, according to a cabinet statement.