Egypt has emerged as a key supplier of liquefied natural gas (LNG) to Turkey, with seven cargoes had been shipped so far in the fourth quarter, according to data from S&P Global Platts Analytics released on December 9.
Turkey is set for record high gas demand in 2021 – of as much as 60 billion cubic metres (bcm) of gas – due to strong consumption in the power sector.
In addition, Ankara is facing the prospect of more of its long-term import contracts expiring in the near future after deals with Azerbaijan for pipeline supplies and Nigeria for LNG already timed out in April and October, respectively, S& P Global data showed.
Turkey still has one long-term LNG contract in place – with Algeria’s state-owned Sonatrach – that is due to operate until 2024, but otherwise has been taking cargoes mostly from the United States and Qatar.
However, since October, Turkey has been regularly receiving shipments from Egypt’s two LNG export terminals — the 7.2 million mt/year Shell-operated Idku plant and the 5 million mt/year Eni-operated Damietta facility.
The new regular supply of LNG comes after Turkey and Egypt restored formal diplomatic relations in early 2021, almost eight years after the two countries cut off relations following a popular uprising that ousted Egyptian Islamist president Mohammed Morsi in 2014.
Last week, Egyptian Petroleum Minister Tarek el-Molla said the country’s natural gas exports are currently at full capacity of around 1.6 billion cubic feet per day (bcf/d) from its two natural gas liquefaction terminals.
He further said Egypt’s natural gas production is stable, currently ranging between 6.5 and 7 bcf/d.
“Egyptian gas has played a role in securing Europe’s energy needs,” the Egyptian minister told Reuters in separate comments at an EMGF conference last week. “The liquefaction units are now operating at full capacity as we try to maximise our natural gas exports in light of the rise in international gas prices.” Minister el-Molla further told Reuters at the time.
