Cairo – Egypt has purchased six cargoes of high-sulphur fuel oil for delivery between November and December as rising liquefied natural gas (LNG) prices increase pressure on the country's energy supply costs.

The purchases were made by state-owned Egyptian General Petroleum Corporation (EGPC) through a recent tender, according to trading sources cited by Reuters. Each cargo is estimated at between 90,000 and 100,000 metric tons.

Egypt has increasingly turned to fuel oil imports to support electricity generation as disruptions linked to the Iran war have tightened global LNG supplies and pushed prices higher.

According to shipping analytics firm Kpler, Egypt imported more than 640,000 tons of fuel oil in October. Although broadly unchanged from September, monthly imports have increased significantly since April.

However, total fuel oil imports between January and October stood at 3.94 million tons, down from 5.95 million tons during the corresponding period in 2025.

Meanwhile, Egypt's LNG imports have increased this year, reaching a year-to-date peak in July before showing signs of easing from August.

The country's Petroleum Ministry had allocated approximately $10.1 billion for LNG purchases in the 2026/27 financial year, which runs from July to June. However, rising international prices have raised concerns about a potential budget overrun.

An analyst told Reuters that the ministry had already spent $5.8 billion by October 6, putting expenditure on track to exceed its allocation before electricity demand typically increases during the spring and summer months.

European benchmark natural gas prices also climbed to their highest level since December 2022 this week, reflecting continued supply disruptions affecting LNG shipments from the Middle East.

Egypt is expected to import 184 LNG cargoes this year, compared with 152 previously, according to an official document. The country is also negotiating multiyear supply agreements with major energy companies as domestic natural gas production struggles to keep pace with demand.

Source: Reuters

Reporting: Jeslyn Lerh, Mohamed Ezz & Enes Tunagur

Editing: Tony Munroe & Xevi Fontdegloria