Egypt is negotiating with energy majors including Shell, TotalEnergies and BP to secure 15 to 18 cargoes of liquefied natural gas (LNG) per month for a period of three to five years. Three trading and industry sources familiar with the matter confirmed the talks, which aim to address a gap between domestic production and rising demand. The potential agreements could result in an annual import cost ranging from $8 billion to $11 billion, according to Reuters calculations.

The discussions involve companies such as Shell, TotalEnergies, BP and commodities trader Hartree Partners. While the duration of the deals is tentatively set between three and five years, the terms have not yet been finalised. One source indicated there is a strong willingness to engage with American entities during these negotiations.

The drive for long-term LNG imports comes as Egypt faces increasing pressure on its energy supplies. Global LNG markets remain tight, a situation exacerbated by the Iran conflict which has curtailed shipping through the Strait of Hormuz. This geopolitical tension has intensified competition among buyers seeking to secure reliable energy supplies.

Data indicates the financial strain of current energy procurement is already mounting. Egypt's import bill for LNG nearly tripled to $1.65 billion in March, despite the volume of imports remaining unchanged. This significant cost increase highlights the urgency for Egypt to establish stable pricing and supply mechanisms through multi-year contracts.

Entities approached for comment, including Egypt's petroleum ministry, Shell, TotalEnergies and BP, did not immediately respond to requests. Hartree Partners declined to comment on the ongoing discussions.