Egypt’s LNG demand declines due to expectations of mild early-summer weather

Egypt's unusually mild start to summer this year will reduce demand for liquefied natural gas (LNG), Bloomberg reports. According to Atmospheric G2, temperatures could fall as much as 4 degrees below normal by the end of the week, significantly reducing the need for indoor cooling systems.

Lower consumption of gas in Egypt will ease pressure on the global LNG market, Bloomberg notes. Last year, the country faced a severe deficit due to falling gas production and growing domestic demand. However, the current situation looks more sustainable. It is also particularly favorable for Europe. Ahead of the next heating season, countries of the European Union are actively replenishing their gas storage facilities, and less competition for LNG supplies from Egypt will be an additional advantage.

MetDesk meteorologist Matt Dobson attributes the unseasonable weather to Arctic air masses moving south. Despite the temporary resumption of gas supply to Egypt's export terminals, analysts expect imports to rise in the summer, when demand traditionally peaks.