Red Sea tensions threaten Egypt’s LNG, LPG exports: S&P Global
Updated 2/12/2024 1:57:00 PM
Arab Finance: The escalating tensions in the Red Sea have weighed on the Egyptian exports of liquefied natural and petroleum gas (LNG and LPG), adding an element of ongoing uncertainty in the country’s export market in the first quarter (Q1) of the year, according to an insight by S&P Global.
The insight showed that Egypt’s LNG exports have reached 270,000 metric tons in 2024 so far, dropping by 64% on an annual basis.
“Egypt experienced the most significant year-on-year decline in LNG exports in 2023, down nearly 50% to 3.7 million metric tons, as its domestic production fell by just over 10% year on year,” LNG Analyst at S&P Global Ayush Agarwal stated.
“The market did not export any cargo between July and October 2023 due to the diversion of gas in the summer months to meet surging domestic demand,” he added.
Egypt is a net exporter of propane with a production ranging between 40,000 and 50,000 metric tons per month, according to S&P Global’s analysts.
However, they predict exports to dwindle over the long term, with Egypt to become a net importer eventually
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