Cairo – August 1, 2024: To maintain its pledge to keep power cuts at bay for the rest of the summer and mitigate its ongoing power shortage crisis, Egypt has reportedly approved contracts to three international companies for the supply of liquefied natural gas (LNG).
According to a government official who spoke with Asharq Business on condition of anonymity, Trafigura from Singapore, Vitol based in Switzerland, and Glencore, also headquartered in Switzerland, have been selected to deliver five LNG shipments between August and September.
The source added that the Egyptian General Petroleum Corporation (EGPC), responsible for managing the tender, negotiated at favorable prices with deferred payment terms extending up to 180 days.
Since April, Egypt has resumed LNG imports to meet rising domestic demand, particularly from the electricity sector, and to compensate for the shortfall caused by declining local production.
In June, Egypt had previously agreed to purchase 21 LNG shipments for the current summer season, indicating a proactive approach to securing adequate energy supplies.
Prime Minister Mostafa Madbouly recently reported that the country's daily energy consumption has exceeded 37 gigawatts, marking a 12% increase from the previous year and resulting in a 4-gigawatt deficit.
Earlier this week, Minister of Electricity and Renewable Energy, Mahmoud Esmat, revealed that Egypt targets 45 thousand megawatts from renewable energy projects under construction.
Esmat noted that the total current capacity of renewable energy combined from wind and sun amounted to about 4.6 gigawatts, while the current capacity of hydroelectric energy reached 2,832 megawatts.
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