Saudi Arabia and Libya Assist Egypt with $200 Million for Gas Amid Energy Crisis

Saudi Arabia and Libya have financed gas purchases worth $200 million to support Egypt during its energy crisis due to declining domestic gas output. Egypt requires $2 billion to meet summer demands, but a currency crisis limits its ability to fund LNG imports. Support from Gulf allies is crucial.

Saudi Arabia and Libya have taken significant steps to assist Egypt in its ongoing energy crisis, which has stemmed from a steep decline in domestic gas production. According to industry sources, the two nations have financed gas cargoes worth at least $200 million to help Egypt manage its summer energy demands.

One source disclosed that Egypt needs approximately $2 billion in gas to cover the summer demand through October. However, a severe hard currency crisis means the country is struggling to afford the necessary imports of liquefied natural gas (LNG). 'Without support from our friends in the Gulf, we won't be able to pay for these shipments,' the source added, indicating efforts to secure further assistance.

Saudi Arabia reportedly financed three out of 32 LNG cargoes bought by Egypt this year, worth around $150 million. In addition, Libya's National Oil Corporation funded a $50 million gas shipment in July. Despite the financial aid, Egypt's energy crisis continues to strain the national budget amid rising costs.

(With inputs from agencies.)