Egypt is strategically positioning itself as a regional energy hub by focusing on various initiatives in the energy sector, including liquified natural gas (LNG) exports, Suez Canal expansion, and investments in renewable energy. Accordingly, Egypt is addressing several paths that underscore its commitment to sustainable energy practices, energy security, and its aspiration to become a pivotal player in the regional and global energy landscape.
Egypt’s LNG Hub Aspirations
In the past years, and during the 2022 UN Climate Change Conference (COP27), Egypt has been promoting the development of natural gas, alongside renewables, as a safe fuel necessary for energy transition. Accordingly, the country has been posing as a significant LNG exporter and LNG provider after the Russian attack on Ukraine. However, due to the current unrest in the Red Sea, which impacts the Suez Canal, Egypt’s LNG exports have been declining. From the beginning of 2024 until Feb 9th, Egypt has only managed to export 270,000 metric tons (mt) of LNG, reflecting a substantial drop of 64% compared to the same period last year, according to S&P Global analysts. In 2023, Egypt’s LNG exports recorded 3.7 million mt, according to S&P Global.
