Business · Energy & Commodities · 3 hrs ago
Iran War Doubles Egypt’s LNG Costs as Domestic Gas Output Falls
The war on Iran has doubled Egypt’s cost of imported LNG, the gas it buys to help meet domestic demand.
Egypt has asked suppliers to delay five of its 15 November cargoes until 2027, adding to about 15 cargoes already deferred since July.
Domestic gas output has fallen as older fields decline faster than new wells come online; in August, production was 3.63 billion cubic feet a day.
Egypt began importing more gas than it produced for the first time on record in July, and imports still supplied almost half of its consumption in August.
The government is burning more fuel oil in power plants to limit spending on expensive gas imports.
New wells and fields are expected to add supply, but analysts cited in the story say production may only stay level in early 2027 before falling again.
Egypt has extended bids for 14 exploration blocks to December 14 as it seeks new sources of gas.
The Iran war has doubled Egypt’s cost for imported liquefied natural gas, and the country is deferring cargoes into 2027.
Egypt is also burning fuel oil in power plants to limit spending on LNG.
Domestic gas output fell to 3.63 billion cubic feet per day in August as older fields declined faster than new wells came online.
Cairo asked suppliers to defer five of its 15 November LNG cargoes, on top of about 15 cargoes already deferred since July.
The petroleum ministry extended the deadline for bids on 14 exploration blocks to December 14.
- Who
- Egypt and its petroleum ministry are managing the higher LNG costs and falling domestic gas output.
- What
- The Iran war has doubled Egypt’s cost for imported LNG as domestic gas production declines.
- When
- Reported on November 4, 2026; the LNG price increase has been reported since September.
- Where
- Egypt.
- Why
- The Iran war has raised LNG cargo prices, while older Egyptian gas fields are declining faster than new wells are coming online.
This story does not have two clearly opposing sides.
Egyptian gas output began a steady decline.
QatarEnergy’s LNG deliveries came under force majeure, and Egypt’s fuel oil imports began trending higher.
Petroleum Minister Karim Badawi pledged to add about 330 million cubic feet per day of domestic gas by the end of 2026.
QatarEnergy extended its force majeure on LNG deliveries through the end of December.
OilPrice reported that the Iran war had doubled Egypt’s LNG costs and that Cairo was deferring cargoes into 2027.
- August gas output
- 3.63 billion cubic feet per day
- November cargoes deferred
- 5 of 15
- LNG import budget
- $10.1 billion for the fiscal year that began July 1
- Exploration blocks
- 14; bid deadline extended to December 14
- Cargo price increase
- As much as 100% since September, to more than $100 million per cargo