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Amidst declining production and rising domestic demand, Egypt, formerly an exporter of gas, has leased a storage facility for LNG imports. The move signifies a shift in energy dynamics for the country.

A floating storage facility with regasification capacity (FSRU) is set to be established in Egyptian waters, marking a strategic collaboration between Australian AIE, Egyptian gas EGAS, and Hoegh LNG, a renowned specialist in floating LNG infrastructure construction.

Scheduled to commence operations from approximately June 2024 to February 2026, the LNG complex aims to address Egypt’s pressing energy security concerns. With plans to halt LNG exports to Europe due to diminished production and heightened energy consumption, Cairo is pivoting to secure its domestic energy needs.

Previously boasting a production capacity of 200 million cubic meters of gas per day, Egypt’s current output has dwindled to 150 million cubic meters per day and continues to decline, necessitating proactive measures to sustain its energy requirements.