Dec 13, 2021, 2:00 PM CST
Cyril Widdershoven
- As demand for LNG around the world soars ahead of winter, Egypt is taking full advantage of high prices
- As well as the financial reward of increased exports, Egypt appears to be using its LNG supply to influence Turkey
- In Turkey, support for Erdogan is dwindling amidst high energy prices and rising inflation, forcing him to open up to both the UAE and Egypt
Egypt’s long-suffering LNG industry is finally experiencing some success as it takes advantage of European gas market constraints and exploits regional geopolitical developments. Cairo’s dream of becoming a global LNG player was derailed by a combination of the Arab Spring, conflict with Turkey, and then COVID demand destruction. Now, however, the country’s LNG industry is poised for major growth, with its largest producer, EGAS, having just offered a cargo on a free-on-board (FOB) basis for loading over December 28 and 29 from its Damietta LNG plant. The EGAS LNG tender will be closing on December 13, sources have stated. The last EGAS LNG tenders, which closed on November 29, were successful, as the company sold four out of five spot cargoes for loading between December and February.
