Egypt is in talks with Germany to lease a floating LNG unit currently operating at the Mukran port on the Baltic Sea, in a move aimed at enhancing gas supplies in preparation for increased demand during the summer, according to a statement from the Ministry of Petroleum and Mineral Resources.
Both parties agreed to organize a visit by an Egyptian delegation to Germany to finalize contractual negotiations regarding the utilization of the unit. This step is part of Egypt’s efforts to secure immediate and long-term gas supplies, having already leased a floating LNG import terminal at Ain Sokhna port last year. Another unit from Jordan is expected to arrive and begin operations by mid-2025. Egypt is also negotiating to lease an additional terminal from Turkey, in addition to talks with Italy’s Eni to establish a new facility.
In a related context, Egyptian and German officials discussed the possibility of Germany purchasing Cypriot gas, under the agreement between Egypt and Cyprus for transporting gas from Cypriot fields to Egypt for liquefaction and re-export. On February 17, Egypt and Cyprus signed agreements for gas transportation and marketing, enhancing Cairo’s ambition to become a regional energy hub, especially amid declining domestic production over the past two years.
Under the agreements, production from Cyprus’s Kronos and Aphrodite fields will be transported to liquefaction facilities in Idku and Damietta, with Egypt expecting to receive 800 to 900 million cubic feet daily. The first supplies from the Kronos field, at 400 million cubic feet daily, are expected by mid-2027, followed by 500 million cubic feet from Aphrodite within two to three years.
These steps are part of Egypt’s strategy to offset declining domestic production, with the country needing around 6 billion cubic feet daily to operate power plants, while current production does not exceed 4.6 billion cubic feet. The government hopes to resume gas exports by 2027, supported by international financing that has helped alleviate the local currency crisis.
