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
17 February 2025
There is a growing feeling that it will not take much for heavy international hitters to follow the US out of the Paris Agreement
14 February 2025
The start of private LNG imports may trigger an evolution in the country’s policy of energy security to encompass commercial exploitation
13 February 2025
New supply from Argentina, Brazil and Guyana is rich in middle distillates, but optimism in terms of volume growth remains tempered by regulatory and technical risks as well as price volatility
12 February 2025
The oilfield expansion provides a fresh influx of revenue but will strain its cooperation with OPEC+ and fails to mask deeper issues with the economy and investors