Facing continued gas supply challenges, Egypt is ramping up its search for alternative fuels by seeking additional fuel oil to meet power generation needs for August, five trading sources told Reuters.
The Egyptian General Petroleum Corporation (EGPC) has issued a tender to purchase approximately 900,000 tonnes of fuel oil for delivery next month, according to the sources.
The tender is expected to close on July 2 and remain valid until July 10.
Egypt has significantly increased fuel oil purchases this year to help compensate for a drop in natural gas supplies—particularly from Israel, where pipeline flows to Egypt have declined.
The country now consumes an estimated 40,000 tonnes of fuel oil daily for electricity production, a local market source said.
The Ministry of Petroleum has yet to respond to media inquiries regarding the latest tender.
In addition to fuel oil, Egypt has stepped up its liquefied natural gas (LNG) imports to meet growing electricity demand.
Over the past two years, the country has experienced recurring power outages, worsened by limited gas availability.
Israel recently resumed limited gas exports from surplus supplies, nearly a week after temporarily halting production at two key offshore fields due to escalating tensions with Iran.
The partial resumption offers some relief, but Egypt continues to explore backup options as the region’s energy landscape remains uncertain.
In May, Canadian energy company Borna said it will invest $40m in a new facility in Egypt to capture and process flare natural gas and support the country’s efforts to meet growing gas demand.