Egypt is urgently negotiating with global energy companies and trading giants to purchase between 40 and 60 shipments of liquefied natural gas (LNG) to combat a worsening energy crunch ahead of the sweltering summer months, according to insiders familiar with the talks. With domestic gas production plummeting and electricity demand surging, the country is racing to secure enough energy to keep the power grid stable—an effort that could cost the government as much as $3 billion, a steep price amid an already fragile economic situation.

President Abdel Fattah al-Sisi recently instructed officials to take proactive steps to ensure consistent electricity supply. His directive came as part of a broader strategy to avoid a repeat of recent summers, where residents endured rolling blackouts due to a shortfall in gas supplies. A source involved in the discussions revealed that Egypt is aiming to import not just LNG, but also approximately one million tons of fuel oil. LNG remains the priority, however, as it typically offers more flexible payment terms—a crucial consideration for a government under intense fiscal pressure.

Over the past two years, Egypt's status as an energy exporter has dramatically reversed. Once positioned as a potential supplier to Europe, Egypt is now a net importer, scrambling to replace dwindling domestic output. In February, the nation recorded its lowest monthly gas production in nearly a decade. At the same time, a foreign currency shortage has delayed payments to international oil companies, slowing down exploration and further constricting production.

Industry experts suggest Egypt may need up to 60 LNG shipments just to meet demand through 2025, and that number could rise significantly—potentially reaching 150 cargoes in the coming years. Talks are reportedly ongoing with major energy exporters including Qatar, Algeria, Saudi Aramco, and several international trading houses. Despite the urgency, official responses from these entities have so far been absent, as none have commented publicly on the negotiations.

Complicating Egypt’s energy equation is a reduced flow of gas from Israel’s offshore Leviathan field, which has been undergoing scheduled maintenance. The disruption has forced Egypt to curtail or completely halt gas supplies to several fertilizer factories for over two weeks. “My factory has been shut down since Saturday,” a fertilizer plant manager disclosed anonymously. Since fertilizer exports are a key source of hard currency, prolonged outages could further strain Egypt’s economic balance.

Adding to the challenge, Egypt is facing the likelihood of increased gas import prices from Israel. Currently, Israeli gas—accounting for 40-60% of Egypt’s imported supply and around 15-20% of total consumption—is sold at rates linked to oil prices, which are now relatively low. Meanwhile, LNG prices, tied to more volatile international gas benchmarks, are significantly higher. Industry insiders claim that Israeli suppliers are pushing for a 25% hike in prices, arguing that current rates of around $6 per mmBtu are too low compared to global LNG prices near $14 per mmBtu. The Israeli energy ministry, however, clarified that price negotiations are strictly commercial and not influenced by government policy.

With soaring summer temperatures on the horizon, Egypt is navigating a complex web of energy supply issues, financial constraints, and geopolitical dependencies. Whether the country can secure sufficient energy in time—and at an affordable cost—remains a pressing concern for both its leaders and its citizens.