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Sunday, 12 December 2021

Egypt becomes a key LNG supplier to Turkey

Egypt has emerged as one of Turkey’s most important LNG suppliers so far in 4Q2021, shipping seven cargoes since the beginning of October, according to S&P Global Platts data. Turkish demand for gas is set to hit record levels this year due to rising consumption in the power sector.

Turkish-Egyptian relations are on the up: Most of Turkey’s supplies are coming from Algeria, the US, and Qatar but warming ties with its regional rival Egypt appear to be opening the door for greater energy cooperation. The two countries have held several rounds of talks this year with the aim of mending an eight-year rift, and there have been signs of progress towards a normalization of diplomatic ties.

Egyptian gas is also heading to Asia as LNG prices in the east soar. Sources tell Reuters that EGAS has offered one cargo for shipping in December.

Egypt’s LNG terminals are running at full capacity as the country tries to capitalize on the surge in natural gas prices overseas. The country is currently exporting the equivalent of around 1.6 bcf/d, helped by the resumption of operations at the Damietta LNG plant in February and rising gas prices in Europe.

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