Egypt relies on foreign funding for gas amid worsening power crisis.

Support from Saudi Arabia and Libya Eases Egypt’s Energy Crisis

As Egypt faces an energy crisis this summer with a steep decline in domestic gas output, Saudi Arabia and Libya have stepped in to help finance gas cargoes worth at least $200 million. These funds are crucial for Egypt to cover its summer demand for gas, with the country needing around $2 billion to meet its needs through October.

Despite a hard currency crisis, Egypt lacks the funds to fully cover its imports of liquefied natural gas (LNG). The support from Saudi Arabia and Libya is essential to ensure the shipments can be paid for, with officials looking to raise more money from allies to address the shortfall.

The assistance from Saudi Arabia and Libya comes at a critical time for Egypt, which is facing financial challenges in reining in its subsidy bill and managing its growing foreign debt. The decline in domestic gas output has added to the country’s struggles, with investments in the gas industry slowing down due to mounting debt.

As Egypt works to stabilize its economy and address its growing power needs, the support from Saudi Arabia and Libya provides a temporary relief in easing the energy crisis that has strained the country’s budget.

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