- Egypt signs deal for 24 Qatar LNG cargoes in 2026
- Gas output falls below 5 bcf/d from 2021 peak
- Zohr field depletion drives import reliance
Egypt has agreed in principle with Qatar Energy to import at least 24 shipments of liquefied natural gas (LNG) in 2026 as the North African country faces a significant drop in domestic natural gas production. As a result of a decline in production that has turned the former gas exporter into a net importer, the agreement to secure electricity supplies during summer peak demand and support Egypt's energy trading hub regional aspirations was announced.
The domestic output had reached a record of 6.6 billion cubic feet per day in 2021 but dropped to less than 5 billion cubic feet per day last year, mostly due to natural depletion of mature fields. The supergiant Zohrfieldthe one that was discovered in 2015 and is responsible for up to 40% of production illustrates this trend: it started at 250 million cubic feet per day in early 2018, increased to 2 billion by September that year, and reached a high of 2.7 billion cubic feet per day, but has been on the decline ever since though there are still investments being made by international majors.
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The agreement in Qatar comes after a separate long, term deal between Israel and Egypt last month for 130 billion cubic meters of gas from the Leviathan field, worth $35 billion. Israeli gas imports reached a record 981 million cubic meters last yearan 18.2% annual increaseaccounting for about one, fifth of Egypt's total gas imports.
These diversified sources are essential to compensate for the domestic shortfall and maintain energy security. By obtaining LNG from Qatar, a top global exporter, Egypt aims to lessen the depletion risk of its fields, guarantee power generation, and at the same time, promote its role in the regional energy markets.