Moscow and Cairo Launch New LNG Project

Moscow and Cairo Launch New LNG Project

 

LNG Terminals in Egypt: Moscow and Cairo Launch New Project

Russia and Egypt are in talks to build liquefied natural gas (LNG) terminals in Egypt, news agencies reported, citing Russian Industry and Trade Minister Anton Alikhanov. Alikhanov told reporters following a meeting of a joint Russian-Egyptian government committee, "We are discussing projects to build LNG terminals. Work is underway."

Egypt suffers from an electricity supply shortage due to high demand for cooling systems in the summer. The country generates most of its electricity by burning natural gas. The government suspended power cuts last July as part of what it calls load shedding after the arrival of some natural gas shipments.

Sources told Reuters in March that the government had allocated up to $1.5 billion for payments to foreign oil and gas companies operating in the country. Arrears accumulated amid a long-standing foreign exchange shortage, which has since eased.

Last September, Egyptian Prime Minister Mostafa Madbouly said that natural gas reserves are still available, but companies are producing less due to Egypt's delay in paying its dues. The Egyptian Prime Minister added that the state aims to restore natural gas field production to normal levels by next summer, indicating that the government is moving to settle its arrears with production companies.

Egypt's gas production reached 4.6 billion cubic meters in January 2024. Despite the country's efforts to increase production, the Joint Organizations Data Initiative (JODI) revealed that production is declining, reaching 3.6 billion cubic meters in the same month of 2025.

The Egyptian Ministry of Petroleum announced three oil and gas discoveries in the Western Desert and the Gulf of Suez. The production capacity of a well in the Western Desert is expected to reach 30 million cubic feet of gas per day. The ministry said in a statement, "Khalda, Petrobel, and GUPCO have succeeded in achieving three new oil and gas discoveries in their concession areas in the Western Desert and the Gulf of Suez."