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
9 March 2026
Petroleum Economist analysis sees increases in output from Saudi Arabia, Venezuela and Kazakhstan among others before region’s murky descent
9 March 2026
Energy sanctions are becoming an increasingly prominent tool of US foreign policy, with the country’s growth in oil and gas production allowing it to impose pressure on rivals without jeopardising its own energy security or that of its allies, argues Matthew McManus, a visiting fellow at the National Center for Energy Analytics
6 March 2026
The March 2026 issue of Petroleum Economist is out now!
6 March 2026
After Europe’s rapid buildout of floating LNG import capacity, Exmar CEO Carl-Antoine Saverys says future growth in floating gas infrastructure will increasingly be driven by developing markets as lower prices, rising energy demand and the need to replace coal unlock new opportunities for unconventional and tailor-made solutions
