Egypt plans to resume LNG exports in Autumn

Egypt plans to resume exports of liquefied natural gas in the autumn after increased domestic demand led to a halt in shipments over the summer.

Hot weather means Egypt is consuming all the gas that it’s producing, leaving little for exports, Energy Minister Tarek el-Molla told reporters in Cairo. The return of supplies from the North African country will mean increased availability for key buyers in Europe and Asia ahead of their winter heating season when demand in those regions increases.

LNG shipments from Egypt’s two production plants typically decline during the hottest months as demand rises at home for power generation. The country didn’t export a single cargo last month and has dispatched only one shipment so far in July, ship-tracking data on Bloomberg show. 

“This points to an increase in cooling demand through the summer,” said Leo Kabouche, an analyst at Energy Aspects Ltd. in London. 

Last year, however, was an exception. The country took advantage of higher global gas prices by exporting the superchilled fuel even during the hot months while importing cheaper heavy fuel oil, el-Molla said. The decline in international prices this year makes it more economical to consume the fuel domestically, he said.