The Egyptian government is working hard to stabilize gas supplies through long-term deals, and in the following report we will show you the details of Egypt’s efforts in this vital and important file.
Talks with foreign companies:
Egypt is conducting negotiations with American and foreign companies to purchase liquefied natural gas through long-term agreements. This shift aims to reduce reliance on the spot market, which is considered more expensive, according to Reuters.
Hedging against price fluctuations:
According to an energy sector source, the Ministry of Petroleum aims to secure 3-4 years of supply. The goal is to protect the economy from sudden increases in gas prices and ensure steady supplies.
Flexibility of terms:
Egypt is seeking to agree on flexible terms in these contracts, as it hopes to restore its domestic production capacity soon or reduce the need for large quantities of imports.
American companies are in the lead:
The talks focus mainly with US companies and companies involved in assembling and selling US production, given their flexibility compared to other gas suppliers.
Reason: Decrease in local production:
This move comes in light of a significant decline in domestic gas production, which has made Egypt search for sustainable solutions to meet local energy demand.
