Following a massive bailout, Egypt faces new risks amid a shortage of gas.

In response to potential power shortages during summer heatwaves, the Egyptian Natural Gas Holdings Corporation has secured LNG shipments, supported by a $50 billion international bailout aimed at stabilizing the country’s economy amid the crisis.

Transitioning from an LNG exporter to an importer underscores Egypt’s evolving energy landscape and fiscal responsibilities. Recent procurement efforts indicate a proactive approach to ensuring a steady gas supply, crucial for cooling during scorching temperatures and preventing recurring power outages experienced in previous summers.

The substantial LNG procurement, while addressing immediate energy needs, poses challenges to foreign currency reserves, especially amidst declining revenues from the Suez Canal due to ongoing assaults by Houthi insurgents on commercial vessels in the Red Sea.

This strategic move marks a departure from Egypt’s previous stance when LNG imports were significantly reduced in 2018 following the discovery of the extensive Zohr gas field, which had positioned the nation as a net exporter.