Apicorp sees more woes for Egyptian and Algerian LNG
The multilateral lender flags risks of ongoing shut-ins and difficult contract negotiations
Egypt’s LNG liquefaction plants could remain “heavily underutilised” until 2022, exporting less than 4mn t/yr, according to the 2020-24 gas and petrochemical outlook published by Saudi Arabia-headquartered multilateral development financier Apicorp. Algeria is also “entering a renegotiation of some of its contracts in a buyer’s market”, it warns. Egypt’s particular problem, the report notes, is that the feedstock for its plants comes from expensive deep offshore fields. Apicorp estimates that its upstream cost of gas is $4.50/mn Btu (see Fig. 1), which “alone may exceed current hub prices”. Adding on $1.75/mn Btu in liquefaction costs puts average Egyptian LNG costs on a free-on-board (Fob)

Also in this section
25 July 2025
Mozambique’s insurgency continues, but the security situation near the LNG site has significantly improved, with TotalEnergies aiming to lift its force majeure within months
25 July 2025
There is a bifurcation in the global oil market as China’s stockpiling contrasts with reduced inventories elsewhere
24 July 2025
The reaction to proposed sanctions on Russian oil buyers has been muted, suggesting trader fatigue with Trump’s frequent bold and erratic threats
24 July 2025
Trump energy policies and changing consumer trends to upend oil supply and demand