Egypt Exports LNG Cargo Despite Tight Summer Supply Concern

Egypt exported the first LNG cargo since mid March despite rising concern for a lack of domestic supplies into the hot summer period. LNG vessel Minerva Amorgos departed the Idku production plant over the weekend and is due to arrive in Poland on May 4 according to Bloomberg.

• Lower domestic gas production and increased summer demand have created shortages in the country leading to a drop in exports.
• Exports will continue until March or April before domestic supply takes precedence during the hottest period of the year from May according to Oil Minister Tarek El-Molla last year.
• TotalEnergies and Shell both have long-term contracts for supplies from Idku plant.
• Exports from Egypt fell 1.4m tonnes y/y to only 0.4m tonnes in Q1 and the country is potentially looking to charter back an FSRU for several years suggesting supplies could be tight for a while according to ICIS.
• Egypt’s last week imported an LNG cargo via Jordan through a pipeline.
• Egyptian Natural Gas Holding Company is aiming to import at least one LNG shipment per month through July or August, sources told Bloomberg last week.

Source: ICIS