Egypt seeks long-term LNG deals with Shell, BP and TotalEnergies

Egypt is moving to secure long-term liquefied natural gas (LNG) supplies from some of the world’s biggest energy companies as declining domestic gas production forces the country to rely more heavily on imports.

The government is in talks with energy majors including Shell, BP and TotalEnergies to buy between 15 and 18 LNG cargoes per month for at least three years, according to three trading and industry sources familiar with the discussions. 

The potential agreements come as global LNG markets remain tight, with geopolitical tensions disrupting energy flows and increasing competition among countries seeking reliable fuel supplies.

For Egypt, securing steady LNG deliveries has become a priority as demand from households, businesses and power plants continues to increase. 

The talks underline the pressure facing Egypt’s energy sector, which has shifted from exporting gas to importing more supplies in recent years.

The country is seeking to avoid heavy reliance on short-term purchases that can leave it exposed to sudden price increases.

Egypt faces rising energy costs as LNG imports increase 

Discussions are ongoing with Shell, BP, TotalEnergies and commodities trader Hartree Partners, with sources saying the contracts could last between three and five years.

Egypt’s Petroleum Ministry and TotalEnergies did not immediately respond to requests for comment, while Shell, BP and Hartree Partners declined to comment. 

The cost of securing additional LNG supplies could place further strain on government finances.

Egypt’s natural gas import bill has nearly tripled, rising from about $560 million before the regional conflict to around $1.65 billion for similar volumes in March, according to industry estimates. 

The proposed deals could cost Egypt between $8 billion and $11 billion annually, based on recent LNG prices that include a premium above Europe’s benchmark gas price.

The spending comes as Cairo manages high debt levels and seeks to protect foreign currency reserves. 

Aly Blakeway, head of Atlantic LNG at S&P Global Energy, said Egypt’s push for medium-term LNG contracts reflects an effort to reduce exposure to unpredictable spot market prices.

Declining gas production drives Egypt’s import strategy 

Egypt’s need for more LNG is linked to falling domestic gas output despite government efforts to attract investment and clear payments owed to international energy companies. 

The country imported about 985 billion cubic feet of natural gas between July 2025 and June 2026, including supplies from Israel and LNG cargoes, according to official documents reviewed by Reuters.

Imports are expected to rise to about 1.08 trillion cubic feet in the following fiscal year. 

Monthly gas production averaged below 4.4 billion cubic feet per day in the 2025-26 fiscal year and is forecast to decline further to about 4.2 billion cubic feet per day this fiscal year. 

Shell, BP and TotalEnergies are among the world’s largest integrated energy companies, with operations covering oil and gas exploration, LNG production, energy trading and renewable power projects.

Their involvement in Egypt reflects the country’s importance in the Mediterranean energy market and its efforts to strengthen long-term energy security. 

Egypt’s LNG negotiations come at a critical time as the government tries to balance rising energy needs with economic pressures.

Long-term supply agreements could provide more stability for the country’s power sector while reducing exposure to volatile global gas prices.