Egypt is reportedly seeking to import up to 60 shipments of liquefied natural gas (LNG) in the lead-up to peak summer demand, according to sources cited by Reuters.

The discussions, involving both international trading houses and state energy firms, aim to offset a sharp decline in local gas production and prevent widespread power shortages.

Based on current global LNG pricing, the deals could cost the government as much as $3 billion—a heavy expense at a time when the country is already navigating a challenging economic landscape.

In a move to address the situation, last week President Abdel Fattah El-Sisi urged officials to take proactive measures to ensure a steady electricity supply, emphasizing the importance of stabilizing power generation ahead of the hotter months.

According to an energy industry source speaking with Reuters, Egypt is also exploring the potential purchase of about 1 million tons of fuel oil. However, LNG remains the preferred option due to more manageable payment terms, the same source noted that fuel oil remains on the table should LNG prices rise sharply.

Data from S&P Global Commodity Insights shows that Egypt has already bought nearly 1.84 million tons of LNG this year—roughly 75% of its total for 2024.

Negotiations are reportedly underway with suppliers from Qatar, Algeria, and Saudi Arabia, as well as major global trading entities.

The situation is further complicated by reduced gas shipments from Israel’s Leviathan offshore field, where planned maintenance has disrupted flows, according to Reuters.

This cutback has led to partial or complete shutdowns at multiple fertilizer plants in Egypt, impacting one of the country’s key export sectors.

“My factory has been completely shut since Saturday,” one industry source told Reuters on condition of anonymity. “Others are only operating at reduced capacity.”

Israel supplies a significant portion of Egypt’s imported gas—between 40% and 60%, accounting for as much as a fifth of the country’s total consumption, according to data from the Joint Organizations Data Initiative (JODI).