The Iran war has had a profound impact on Egypt's liquefied natural gas (LNG) industry, doubling the costs associated with this product. This situation has arisen due to the continuous decline in gas production from Egypt's oil fields.
Decline in Gas Production in Egypt
As one of the main gas producers in North Africa, Egypt has faced serious challenges in production in recent years. According to reports, the country produced about 60 billion cubic meters of gas in 2022, a figure that has decreased compared to previous years. This decline in production is expected to continue and gradually affect the liquefied natural gas market.
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Consequences of the Iran War on the LNG Market
The Iran war, with its direct impacts on global gas prices, has also affected the LNG market. The increase in prices due to the need for more gas imports from other countries, especially as domestic production has declined, is significantly noticeable. LNG costs in Egypt have currently reached about $22 per million BTUs (MMBtu), which is nearly double the previous prices.
As a result of this situation, Egypt is forced to seek new sources to meet its needs. This may lead to an increased dependence on natural gas imports, which brings new economic and security challenges.
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