LNG instead of relying on the more costly spot market, according to an exclusive Reuters report, as the country’s gas production continues to decline. 'The ministry of Petroleum is seeking three or four years of supply to hedge from sudden price increases. It is also seeking to include a flexibility clause as the government hopes it could maybe find gas sooner or doesn't need that much gas,' an industry source has told Reuters.
According to Egypt’s Petroleum Minister Tarek El Molla, Egypt’s two liquefaction plants have plenty of spare capacity with the LNG plants operating at less than full capacity, 'They are there prepared for the time when we make the decision to increase their capacity to double or triple,' he told Reuters. Unfortunately, rising domestic demand as well as infrastructure constraints limit Egypt’s ability to quickly ramp up output.