According to Reuters, Egypt is currently in talks with its LNG suppliers, looking to reduce its dependence on LNG imports as its domestic production increases. Cairo specifically is reportedly aiming for gas self-sufficiency by the end of 2018.
Reuters claims that EGAS – the state-run importer – is aiming to defer a number of LNG cargoes due this year. On top of this, one source reportedly said that Egypt is looking to cut back on its 2018 purchases from 70 LNG cargoes to just 30 cargoes.
Reuters claims that a number of recent discoveries are the main reason for this reduction in LNG imports. For instance, Adam Pollard, senior North Africa oil and gas analyst at Wood Mackenzie, reportedly said: “Test flows from (BP's) West Nile Delta have started ahead of schedule and Eni's giant Zohr find is progressing quickly on track for first gas later this year, but it's output from the Nooros field that has surprised everyone this year.”
LNG traders reportedly said that talks with Egypt on deferring cargoes are underway, and that there are discussions amongst producers and traders on where these supplies will be diverted to. Reuters claims that, this year already, approximately 10 shipments have been deferred by EGAS, with a further 10 – 15 shipments left to go.