Egypt to Lease German Floating Gas Liquefaction Unit Amid Production Challenges

Egypt plans to lease a German floating gas liquefaction unit to address declining domestic gas production. The Egyptian petroleum ministry announced the plan on Tuesday. This move aims to meet rising domestic demand, particularly during the summer months. Egypt has been working to increase production at the Zohr offshore gas field. Operator Eni resumed drilling last month after output fell to 1.9 billion cubic feet per day in early 2024, significantly below its 2019 peak. The leasing plans were discussed between Egypt's Petroleum Minister Karim Badawi and Philipp Steinberg, the German director-general for economic stabilization, energy Security, gas, and hydrogen infrastructure, during the CERAWeek energy conference in Houston, Texas. They also discussed Germany's potential purchase of Cypriot gas via Egypt's liquefaction facilities. A delegation from Egypt will visit Berlin this month to finalize the contractual details.