Egypt secures $200mln natural gas funds from 2 Arab countries amid energy shortfall

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Egypt has secured at least $200 million in financing from Saudi Arabia and Libya to purchase natural gas cargoes this summer amid its energy crisis, Reuters reported, citing unnamed sources familiar with the matter.

The funds have been critical in addressing the country's urgent power needs, as domestic gas production has plummeted, and hard currency shortages have hampered Egypt's ability to import sufficient liquefied natural gas (LNG).

Egypt requires about $2 billion worth of natural gas to meet its summer demand through October, according to one of the sources.

However, without the financial backing from Gulf allies, the government would struggle to cover these costs, a source indicated.

So far, Saudi Arabia has financed three liquefied natural gas (LNG) shipments worth around $150 million, while Libya purchased one cargo worth about $50 million in July.

In addition to its immediate challenges, Egypt faces a long-term decline in gas production, with output from the giant Zohr offshore field—a key asset discovered by Italian energy company Eni—falling significantly since its peak in 2019.

The rapid development of Zohr, along with slowed investments in the sector due to mounting debts, has contributed to a bleak outlook for the country's gas industry.