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    Egypt earns $8bn in LNG exports in 2021/22 fiscal year


Egypt generated $8bn from LNG exports in the 2021-22 fiscal, as rising production allowed it to divert more supply to its liquefaction terminals.

by: Callum Cyrus

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Natural Gas & LNG News, Africa, Liquefied Natural Gas (LNG), Security of Supply, News By Country, Egypt

Egypt earns $8bn in LNG exports in 2021/22 fiscal year

Egypt booked $8bn of LNG export revenues in the 2021-22 fiscal year, up 13 times on the amount it generated eight years ago, the country's cabinet reported on social media on September 26.


In the year ending June 30, 2022, Egypt produced 7.2mn metric tons of LNG f0r export, up from 1.9mn mt in the fiscal year 2013-14 when it generated $600mn in export revenue. Some 108 agreements were signed to enable oil and gas production, unlocking at least $22bn in investment value.

"The Egyptian state is moving forward towards achieving its vision of becoming a regional centre for gas production and exports, in light of its wealth and capabilities that qualify it to achieve this goal,” said the Ministry of Petroleum and Natural Resources in a statement.

Egypt was a net gas importer towards the middle of the last decade. Things changed with the launch of the Eni-operated Zohr gas field in 2017, considered the biggest gas deposit in the East Mediterranean region.

The country is equipped with two LNG export and liquefaction plants, at Damietta (5.6mn metric tons/year) and Idku (7.2mn mt/yr). Damietta returned to service in 2021 after a nine-year hiatus, helping Egypt record a fivefold yr/yr increase in LNG exports last year.

In line with its Vision 2030 national strategy, Egypt aims to produce around 50% of its energy mix from natural gas and renewables by 2030, while reducing the use of liquid fuels like crude oil. Nevertheless, Egypt restored its net exports status for natural gas in September 2018.

The government now wants to capture the maximum benefit from its upstream gas resources. Egypt's prime minister Mostafa Madbouly has vowed to send more gas to export markets, capitalising on soaring energy prices in light of the Russia-Ukraine war.

Egyptian gas output reached a new record of 69.2bn m3 in 2021-2022, up more than 65% on six years ago. Zohr's output reached 2.7bn m3/d in the same period.

More than 72% of Egypt's LNG shipments were sold to European customers in the first half of year, compared with 29% in H1 2021, according to data from financial markets intelligence service Refinitiv. Increasing gas exports may also allow the government to build up valuable foreign currency reserves.