LNG cargo prices double… Egypt's August production falls 10.6%

Egypt’s LNG import costs have doubled since the Iran war, with Oil Minister Karim Badawi saying on August 31 that a single cargo now costs about $80 million, up from roughly $40 million before the conflict, while August gas production fell 10.6% year on year. Higher shipping and insurance costs are compounding the gas price increase, according to Ahram Online. State gas company EGAS has allocated about $1.3 billion for October LNG imports, $700 million more than a year earlier. The government is trying to lift output through well workovers and exploration tenders. The combination of costlier cargoes and falling domestic supply raises pressure on Egypt’s import bill and fiscal position; watch whether the exploration round and restored well output can narrow the production gap.