Egypt Aims to Resume Gas Exports by October, Minister Says

(Reuters) — Egypt is targeting a resumption of LNG exports by October at the start of autumn, petroleum minister Tarek El Molla told reporters on July 19.

Most of Egypt's production is consumed domestically in the summer when temperatures are high, but there are excess quantities available for export during winter, the minister said.

El Molla added that summer exports increased last year because the government switched from using natural gas in power stations to mazut fuel oil in order to bank on the higher natural gas prices.

"We exported more gas because we relied more on fuel oil which last year was cheaper than natural gas so I'd import mazut and export natural gas," said El Molla. "Today it’s the opposite."

Egypt had not exported any LNG in June because of seasonal factors, the minister said earlier this month, adding that a shipment was expected in July.

Some trading sources have told Reuters they believed the lack of shipments in June was a result of declining domestic production.

Egypt, the most populous Arab country, has sought to position itself as a regional energy hub, strategically located to supply its own gas and re-exported Israeli gas as LNG to the Middle East, Africa and Europe.

Last year, it signed a framework deal with the European Union and Israel to expand gas exports, as Europe sought alternatives to Russian gas because of Russian forces invading Ukraine in February 2022.

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