Sigma Capital

19-05-2025

Russia plans to set up LNG Plant in Egypt

Source: MIST

Business Today-


Russia is currently in talks with Egypt’s Ministry of Petroleum and Mineral Resources to establish liquefied natural gas (LNG) plants on Egyptian soil.

Russian Minister of Industry and Trade, Anton Alikhanov, told Russian news agencies, “We are discussing projects to build LNG plants. Work is proceeding at full speed.”

He added that these discussions involved oil and gas sector representatives during Egyptian President Abdel Fattah El-Sisi’s recent visit to Russia in May.

The 15th session of the Egypt-Russia Joint Committee for Trade, Economic, Scientific, and Technical Cooperation was held on Wednesday in Moscow. It was co-chaired by Egyptian Minister of Investment and Foreign Trade Hassan El-Khatib and his Russian counterpart, according to a statement from the Ministry of Investment.

El-Khatib highlighted that the latest meeting between President El-Sisi and Russian President Vladimir Putin underscored both leaders' desire for the joint committee’s success, reaffirming “the importance of serious and joint work to ensure the current session achieves its goal of strengthening economic relations.”

Egypt aims to import between 155 and 160 LNG cargoes in 2025 to bridge the gap between domestic demand and local gas production.

According to data from the Gas Exporting Countries Forum (GECF), Egypt’s natural gas production declined by 7.7 billion cubic meters in 2023, while local consumption rose by 0.9 billion cubic meters, reaching 61 billion cubic meters. The country’s total LNG liquefaction capacity stands at 12 million tons per year.

In parallel developments, the Egyptian Cabinet on Wednesday approved five new petroleum concession agreements, valued at $221.23 million, in addition to $31.5 million in non-refundable signature bonuses. The deals also include a commitment to drill a minimum of 24 wells.