Egypt signs gas deal with Qatar to meet rising demand, weeks after long-term deal with Israel

Egypt has signed a deal with Qatar to increase its supply of Liquefied Natural Gas (LNG) to meet rising power demands in the country, just weeks after Cairo signed a similar long-term gas deal with Israel.

The deal with Qatar will expand energy co-operation on infrastructure, shipping and storage, and comes as Egypt tries to diversify energy resources in the country amid its shrinking gas reserves.

The deal will see Qatari LNG supplied to Egypt, statements from both governments confirmed.

Egypt will receive 24 LNG deliveries through the summer months, where energy demands soar amid the stifling high temperatures.

The agreement also outlines plans for further joint investments and technical partnerships in gas exploration, processing and broader energy infrastructure.

QatarEnergy and the Egyptian Natural Gas Holding Company also finalised a mechanism for delivering Qatari LNG to two points in Egypt - Aom Sokhna and Damietta.

The latest development comes just over two weeks since Egypt signed a long-term gas export agreement with Israel, lasting up until 2040. The deal is valued at around $35 billion, reports state.

The announcement was made by Israeli Prime Minister Benjamin Netanyahu, who is facing international scorn for his brutal war on Gaza, which has killed over 71,000 Palestinians since October 2023 and devastated the enclave.

However, the premier presented the deal as a symbol of regional stability, garnering even more backlash in Egypt and around the world.

Egyptian officials responded by stating that the deal was "purely commercial" and did not have political weight or obligation. The country’s State Information Service further reassured people that the deal would not influence its stance on the war, and was purely driven by economic considerations.

Egypt’s gas production started declining in late 2022, forcing it to import supplies from Cyprus and putting additional pressure on its ambitions to be a regional gas supply hub.

Despite the decline and deals signed, Egypt’s petroleum minister, Karim Badawi, said last week that Egypt still plans to achieve self-sufficiency in oil and gas.