By: OrePulse

Egypt's state oil company, the Egyptian General Petroleum Corporation (EGPC), has bought six cargoes of high-sulfur fuel oil for delivery in November and December, according to trading sources, as the country increases fuel oil imports to cover a widening gap in its natural gas supply.

Each of the six cargoes is sized at 90,000 to 100,000 metric tons, according to a trading source familiar with the tender. The purchase adds to a broader rise in fuel oil buying this year: Egypt's monthly fuel oil imports have more than tripled since the start of 2026. Data from trade analytics firm Kpler show October imports surpassing 640,000 tons, a level little changed from September but well above levels recorded earlier in the year, with imports elevated since April. For the January-to-October period, however, overall fuel oil imports fell to 3.94 million tons, from 5.95 million tons over the same months in 2025.

Egypt's Petroleum Ministry did not respond to a request for comment made outside normal working hours.

The shift toward fuel oil comes as global liquefied natural gas markets have tightened and prices have climbed, a trend traders link to disruption connected to the war involving Iran. Egypt's own LNG imports reached a year-to-date high in July and have eased since August, a pattern that has pushed the country to lean more on alternative fuels, including fuel oil, to help meet power-generation needs during the gap.

The Petroleum Ministry had budgeted about $10.1 billion for LNG purchases in the 2026-27 fiscal year, which runs from July to June. An analyst told Reuters that by October 6 the ministry had already spent $5.8 billion of that budget, putting spending on pace to exceed the full-year allocation before the higher-demand spring and summer months arrive.

Natural gas prices in Europe have also risen sharply. The front-month contract for the Dutch TTF benchmark climbed to its highest level since December 2022 in the same week, as shipping disruptions in the Middle East kept global LNG supply tight and pushed buyers such as Egypt to compete harder for cargoes.

A government document shows Egypt's LNG cargo imports are expected to rise to 184 shipments this year, up from 152 the previous year, even as the country works to diversify its fuel mix.

Egypt is also in talks with international energy majors over multiyear natural gas supply agreements, as domestic gas production struggles to keep pace with rising demand, according to the same reporting. The discussions reflect a broader push by Cairo to secure longer-term energy supplies while it balances near-term LNG costs against a growing reliance on fuel oil to keep power plants running.