Egypt's LNG imports to rise as domestic gas output falls 7% in Q2 2026

AI digestMimile.ai EditorialAugust 28, 2026 at 05:00 AM

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Egypt's LNG imports to rise as domestic gas output falls 7% in Q2 2026

Egypt's domestic natural gas production fell 7% year-on-year to 109.3 million cubic meters per day in the second quarter of 2026, while domestic consumption reached a record 190 million cubic meters per day in June. The widening shortfall is pushing Cairo to expand LNG imports, with 19 cargoes received in August alone. The recently approved Cronos project offshore Cyprus is expected to supply up to 2.8 million tonnes per year of LNG from 2028, offering Egypt a new feedstock source.

Key Facts

Egypt's natural gas production fell 7% year-on-year to 109.3 million cubic meters per day in Q2 2026, continuing a decline since the 2021 peak.
Domestic gas consumption reached a record 190 million cubic meters per day in June 2026, with power generation alone using 113 million cubic meters per day.
Egypt received 18 US LNG cargoes and 1 Mexican cargo in August 2026, totaling 1.2 million tonnes, slightly below July's record 24 cargoes.
The Cronos project offshore Cyprus, sanctioned by Eni and TotalEnergies on July 28, 2026, targets first gas in 2028 with four subsea wells producing up to 14.2 million cubic meters per day.
Egypt's LNG import capacity stands at 16.9 million tonnes per year after the Energos Winter FSRU at Damietta was struck by a drone on July 29, 2026.

Production Decline

Egypt's natural gas output fell to 109.3 million cubic meters per day in Q2 2026, down 7% from a year earlier. The decline is concentrated in the offshore Mediterranean, while stronger Western Desert onshore production has not reversed the national trend. Domestic consumption reached 190 million cubic meters per day in June 2026, the highest for that month on record. Power generation alone consumed 113 million cubic meters per day, nearly matching Egypt's entire domestic output.

Import Expansion

Egypt began importing LNG in mid-2024 and has since deployed four floating storage and regasification units with a combined capacity of about 20.2 million tonnes per year. Only three FSRUs are currently operational after the US-owned Energos Winter at Damietta was struck by a drone on July 29, reducing total regasification capacity to 16.9 million tonnes per year. In August 2026, Egypt received 18 US LNG cargoes and 1 Mexican cargo, totaling 1.2 million tonnes, slightly below July's record 24 cargoes. A new Egyptian exploration round opened this month may eventually slow the production decline, but near-term discoveries will not close the deficit.

Cyprus Corridor

Cyprus has recorded six significant offshore gas discoveries but has yet to produce commercial gas, with a small domestic market and no operating gas-processing or LNG-export plants. The Cronos development in Block 6 was sanctioned by Eni and TotalEnergies on July 28, 2026, targeting first gas in 2028. Four subsea wells are expected to produce up to 14.2 million cubic meters per day, equivalent to about 2.8 million tonnes per year of LNG. The project offers Cyprus an export route, Egypt feedstock for underutilized infrastructure, and Europe another non-Russian gas source.

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Egypt's LNG imports to rise as domestic gas output falls 7% in Q2 2026

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Egypt's LNG imports to rise as domestic gas output falls 7% in Q2 2026

Key Facts

Production Decline

Import Expansion

Cyprus Corridor

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