Russia, Egypt discussing construction of LNG terminals in Egypt

MOSCOW. May 14 (Interfax) - The Russia-Egypt commission on trade, economic, scientific and technical cooperation during a meeting on Wednesday discussed cooperation in the oil and gas sector, including constructing LNG terminals in the African country, Russia's Industry and Trade Minister Anton Alikhanov told journalists.

"Projects to construct LNG terminals are under discussion, though I could probably not say anything more specific at this time. The work is underway, however," Alikhanov said regarding the representatives of Russian oil and gas companies participating in the intergovernmental commission meeting.

Alikhanov said that representatives of the oil and gas sector also participated in discussing the matter during the May visit of Egyptian President Abdel Fattah al-Sisi.

Egypt resumed LNG imports in June 2024, for the first time since 2018, which was due to a rapidly widening gap between gas supply and demand.

According to Gas Exporting Countries Forum data, Egypt's gas production decreased by 7.7 billion cubic meters or 11.5% in 2023, while domestic consumption increased by 0.9 bcm or 1.4% to 61 bcm, resulting in gas exports falling by 6.4 bcm or 53% to 5.2 bcm. LNG accounted for most of the drop in exports, falling 6.14 bcm or 54%. Egypt's gas liquefaction capacity is 12 million tonnes per year (20 bcm).

Egypt halted LNG exports in April 2024 due to a shortage of natural gas. In total, the country imported about 2.34 million tonnes of LNG - approximately 350,000 tonnes per month - in 2024.