Egypt reverts to oil as gas woes deepen

Facing dwindling gas production and mounting energy demand, Egypt is turning to fuel oil to keep the lights on, OilPrice.com reports. The state-run Egyptian General Petroleum Corporation has issued tenders to purchase nearly 2 million tonnes of fuel oil for delivery through June, according to Bloomberg, as soaring gas prices make oil a cheaper alternative for power generation.

Once a net exporter of liquefied natural gas (LNG), Egypt has become a net importer in the span of a year. Earlier this week, Cairo signed a decade-long agreement with Höegh LNG to station a new floating LNG import terminal near Alexandria by late 2026. The unit, converted from the carrier Höegh Gandria, will replace the Höegh Galleon, currently the country’s only operational import terminal.

With peak summer demand approaching, Egypt’s pivot reflects broader energy anxieties in the region—where heatwaves and supply shortfalls increasingly force short-term fixes over long-term reform.