Egypt turns to Qatar as gas demand rises and reserves decline

Reports indicate that Egypt and Qatar have signed a new agreement aimed at boosting the supply of liquefied natural gas (LNG) and expanding energy cooperation between the two countries.

The agreement establishes a framework for cooperative investments and technological collaboration in gas discovery, processing, and broader energy infrastructure development.

Egypt is currently grappling with rising electricity demand and declining domestic gas reserves, challenges the new gas initiatives are expected to address.

Under the agreement, Egypt is set to receive LNG supplies from Qatar, alongside expanded cooperation in energy infrastructure, storage, and shipping, according to statements from both governments.

Egypt and Qatar have maintained a long-standing energy partnership, with Qatar recognised as the world’s largest exporter of liquefied natural gas. The latest deal underscores Qatar’s continued strategic importance to Egypt’s energy security and regional affairs, particularly in light of Cairo’s recent gas agreements in the Eastern Mediterranean.

As part of the agreement, plans have been finalised to transport Qatari LNG to Egypt’s Ain Sokhna and Damietta ports. The deal was formally concluded between the Egyptian Natural Gas Holding Company and QatarEnergy.

Egypt’s Ministry of Petroleum said the agreement is intended to strengthen the country’s position as a regional hub for gas trade in the Eastern Mediterranean while ensuring a stable and reliable supply of natural gas.

Background: Israel–Egypt Gas Deal

In August 2025, Egypt and Israel entered into a landmark natural gas agreement valued at an estimated $35 billion, one of the largest energy deals in the Eastern Mediterranean.

The deal was signed between partners in Israel’s Leviathan gas field, led by NewMed Energy, and U.S.-based energy company Chevron. Under the agreement, gas from the Leviathan field—located offshore in the Mediterranean and holding reserves of nearly 600 billion cubic metres—will be supplied to Egypt.

The agreement covers the delivery of approximately 130 billion cubic metres of natural gas through 2040, or until the contracted volumes are fully delivered.

To accommodate increased gas flows, Israel and Egypt plan to upgrade existing infrastructure, including boosting production capacity at the Leviathan field and developing a new cross-border pipeline through Nitzana.

Credit: Business Insider Africa