Mild summer start in Egypt means more LNG for Europe

COOLER WEATHER TEMPORARILY MAKING GLOBAL GAS MARKET LESS TIGHT

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A mild start to summer in Egypt is deceiving the need for higher imports of liquefied natural gas, and leaving more of the fuel available for Europe, ahead of a crucial stockpiling season.

Average temperatures in the North African country are likely to dip 7.2 C below normal later this week and slash the number of cooling degree days by almost one-third in the first three weeks of April compared with 2024, data from Atmospheric G2 show.

Cooler-than-usual weather will curb Egypt's power demand and appetite for LNG.

The country turned into a major importer last year from a net exporter previously as declining local gas output and surging demand led to energy shortages and blackouts.

Shift in demand dynamics

This will further loosen the global LNG market that's already weakened by easing consumption in Asia, leaving Europe free to snap up cargoes to fill depleted storage sites.