Egypt Signs Gas Deal With Qatar to Boost LNG Supplies

Egypt and Qatar have signed a new agreement to increase liquefied natural gas (LNG) supplies and deepen bilateral energy cooperation, as Cairo moves to diversify its energy sources amid declining domestic gas reserves and rising electricity demand.

The deal, signed on Sunday, comes just weeks after Egypt concluded a separate long-term gas agreement with Israel valued at up to $35 billion, underscoring Cairo’s efforts to secure stable energy supplies from multiple partners.

Under the Qatar-Egypt agreement, Qatari LNG will be supplied to Egypt, while cooperation will expand across infrastructure development, storage facilities, and LNG shipping, according to statements from both governments. Egypt is expected to receive 24 LNG cargoes over the summer months, a period that typically sees peak energy consumption.

Egypt has been grappling with shrinking natural gas production and growing power demand, prompting the government to seek alternative supply routes to avoid electricity shortages. The Petroleum Ministry said the agreement aims to ensure stable gas supplies and reinforce Egypt’s ambition to become a regional gas trading hub in the Eastern Mediterranean.

As part of the deal, the Egyptian Natural Gas Holding Company and QatarEnergy finalized a mechanism to deliver Qatari LNG to Egypt’s Ain Sokhna and Damietta terminals. The agreement also establishes a framework for joint investments and technical cooperation in gas exploration, processing, and wider energy infrastructure.

Qatar, one of the world’s largest LNG exporters, has long been a strategic energy partner for Egypt. QatarEnergy already holds exploration rights in several offshore Mediterranean blocks and is planning further drilling and investment activity in the coming years.

Beyond energy cooperation, Doha has played a significant political and diplomatic role in the region, including mediating conflicts and supporting development initiatives. Analysts note that the new LNG deal may help Egypt signal that it is broadening its energy partnerships following public backlash over its recent gas agreement with Israel.

That Israeli deal, announced by Prime Minister Benjamin Netanyahu, sparked criticism in Egypt amid ongoing anger over Israel’s military campaign in Gaza. Egyptian officials stressed at the time that the agreement was “purely commercial” and did not affect Cairo’s political stance on the war.

Analysts say the Qatar agreement highlights Egypt’s attempt to separate energy policy from diplomacy, while maintaining its position as a key regional mediator and the Eastern Mediterranean’s leading gas hub.