Egypt buys 80 LNG shipments from US 'Hartree Partners' for 4 billion dollars

Economie Sada - Egypt has agreed to purchase approximately 80 shipments of liquefied natural gas from the American company "Hartree Partners" for a value of 4 billion dollars, with shipments set to begin in January, according to an Egyptian government official speaking to "Asharq" on the condition of anonymity.

The official's statements come just hours after Marco Rubio, U.S. Deputy Secretary of State, announced on the platform "X" on Thursday that Egypt had chosen "Hartree Partners" to conclude a gas supply agreement, enhancing American economic and trade interests worldwide.

The agreement is part of Egypt's efforts to diversify its gas supply sources and aims to transform the country into a regional energy hub in the Eastern Mediterranean by importing gas from neighboring countries, amid government efforts to return to exporting by 2027, as mentioned earlier by Prime Minister Mostafa Madbouly.

Egypt had contracted to import between 155 and 160 LNG shipments during 2025 to bridge the gap between the actual demand of the local market for natural gas and local production.

The official stated that the American company agreed to provide the Egyptian Holding Company for Natural Gas "EGAS" with credit facilities for repayment ranging from 6 to 12 months, with a price premium proportional to the status of the global LNG market.

Egypt transitioned to being a major importer in 2024 due to declining production from local fields and increased demand resulting from population growth and rising temperatures, putting pressure on global markets.

The country is trying to increase natural gas production to 6.6 billion cubic feet per day by 2030, a 58% increase from the current rate of 4.2 billion cubic feet, according to Egypt’s Minister of Petroleum and Mineral Resources, Karim Badawy. This includes drilling 14 exploratory wells in the Mediterranean in 2026 to assess reserves of 12 trillion cubic feet.

The government official clarified that the value of the shipments "is not fixed and will be subject to a pricing formula linked to the global market at the time of delivery, allowing for an increase or decrease in the shipment value margin." He indicated that the shipment load is estimated to range between 140,000 and 165,000 cubic meters of LNG per shipment, with values based on current global LNG prices ranging between 50 million and 55 million dollars.

The official mentioned an increase in price of about two million dollars per shipment in exchange for the payment feature that extends over a period of up to one year.

The shipment supplies will be managed through the "Hartree Partners LP" branch in Egypt, following the signing of the commercial agreement with "EGAS".

Cairo became the largest importer of liquefied natural gas in the Middle East in 2025, surpassing Kuwait, due to declining domestic production and increasing demand, prompting a shift to being a net importer to avoid a supply crisis.

See also: Egypt surpasses Kuwait as the largest importer of LNG in the Middle East

Egypt's gas imports rose by 51% in the first nine months of the current year to reach 15.6 billion cubic meters, according to data from the Joint Petroleum Data Base "JODI".

The government official indicated that entering into long-term contracts with global companies offers Egypt multiple advantages, primarily the provision of large shipments and protection from fluctuations in the spot LNG market.