Egypt's Natural Gas Company and QatarEnergy signed an agreement to deliver Qatari liquefied natural gas shipments to the Sokhna and Damietta ports, as Cairo seeks to secure supplies ahead of summer demand and aims to return to net gas exporter status by 2027, Ahram Online reported on January 4.

The Egyptian Ministry of Petroleum and Mineral Resources announced the agreement, which follows a memorandum of understanding between Egypt's petroleum ministry and Qatar's Ministry of State for Energy Affairs to enhance cooperation on trading and importing LNG.

The MoU aims to diversify LNG sources and expand cooperation to provide gas shipments for Egypt's needs whilst supporting efforts to increase local production. Egypt has been negotiating long-term contracts with Qatar to secure natural gas ahead of summer 2025, ensuring supplies for electricity generation.

QatarEnergy operates six offshore areas in Egypt's Mediterranean and plans to expand operations over the next five years, including drilling several exploration wells. The company acquired a 27% stake in the North Cleopatra offshore exploration block in October 2025, a 40% stake in two new exploration blocks, and a 32% stake in the North El-Dabaa (H4) block in 2024.

Qatari investment in Egypt has grown, with a financing package worth $7.5bn pledged for projects in tourism, real estate, food security and North Coast development. Qatar is investing in agriculture, hospitality and renewable energy.

Egypt allocated EGP136.3bn for electricity and renewable energy projects during FY2025/2026 to bolster the green transition and increase foreign currency inflows. The country targets 99.8% electricity coverage and a reduction in energy losses to 16.5% following prolonged power cuts in 2023 and 2024.

Egypt's LNG imports rose 188% year-on-year to 7.8mn tons during the first 11 months of 2025, but are expected to decline by at least 30% in 2026 as domestic production increases and renewable energy grows.

The agreement signals Egypt's shift in energy outlook, with the country aiming to boost the electricity and renewable energy sector's output to EGP655.6bn by diversifying energy sources and improving efficiency.