In the face of a worsening energy crisis, Egypt has secured at least $200 million from Saudi Arabia and Libya to purchase gas shipments, according to industry sources. This financial aid comes as Egypt faces a significant decline in domestic gas production and struggles with a hard currency crisis, making it difficult to fund liquefied natural gas (LNG) imports needed to meet summer demand.
To cover the estimated $2 billion needed for gas imports through October, Egypt has sought financial assistance from Gulf allies. Saudi Arabia financed three of the 32 LNG shipments this year, while Libya contributed by purchasing one cargo in July.
Egypt’s declining gas production and rising energy demands have forced the country to implement power cuts, further straining its budget as it battles soaring subsidy costs amid economic challenges. The country’s foreign debt stands at $154 billion, and domestic gas output has plummeted to a six-year low, raising concerns about long-term energy stability.
The financial and power crises present significant obstacles for President Abdel Fattah Al-Sisi’s efforts to stabilize the economy and support ongoing infrastructure projects. Egypt’s rising power consumption, coupled with a weakening currency and high inflation, has led to fears of public unrest reminiscent of the protests that toppled former President Mohamed Morsi a decade ago.