Prime Minister Mostafa Madbouly. Photo courtesy of Egyptian cabinet Facebook page.
To mitigate the impact of this seasonal decline, Madbouly stated that while Egypt had only one regasification ship last year, two are currently operational. He added that two other ships will arrive next month, bringing the total number to four floating storage regasification units (FSRUs) to help meet demand.
In May, Egypt received the second FSRU at Alexandria Port to secure natural gas supplies for power generation during peak summer demand.
Petroleum and Mineral Resources Minister Karim Badawi stated that the step is part of Egypt's strategy to ensure a steady natural gas supply for power stations and support the electricity grid's stability throughout the summer.
The Prime Minister said production is expected to gradually recover starting in September, as exploration efforts and operational measures yield fruit.
He noted that apart from new discoveries, Egypt's domestic gas production will return to pre-crisis levels within less than two years.
Madbouly went on to say that if the expected discoveries materialise, the country could see an accelerated recovery, boosting local output even further.
He added that the government remains optimistic about future gas discoveries, which could significantly speed up production and enable Egypt to reclaim its status as a gas-exporting nation, reducing reliance on imports.
During his press conference, Madbouly also emphasised that, as previously promised, there will be no electricity outages this summer.
Previous power outages
Egypt has experienced recurring electricity shortages in previous summers, leading to scheduled power outages. In response, Prime Minister Mostafa Madbouly announced in June last year a $1.18 billion plan to import gas and address expected supply gaps during the peak season.
Egypt began a load-shedding program in July 2023 to ease pressure on its gas network, which had been strained by rising temperatures and increased air conditioner use.
This came despite the country's earlier assertions of having an electricity surplus and exporting around 8 million tons of natural gas worth $8.4 billion in 2022.
Although Egypt declared self-sufficiency in natural gas in 2018, driven by increased local production and significant discoveries such as the Zohr field in the Mediterranean, growing domestic demand has recently outpaced supply, leading to shortages.
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