Thread by @Frank_Stones

🇪🇬Egypt is doing everything it can to bolster LNG exports to🇪🇺EU and collect additional revenues for its stranded domestic economy.
The targets are to maximise domestic production and rationalise consumption, hitting a new high in LNG exports for 2022.
At what costs?🧵

According to the🇪🇬Minister of Petroleum & Mineral Resources Tarek El-Molla🇪🇬LNG exports will hit a new high of 8 mt/y in 2022.
This means +8% compared to 2021 as🇪🇬tries to gain from the hefty prices of LNG paid by🇪🇺countries.
This morning, TTF month-head is surging by nearly 5%

To maximise the🇪🇬exports towards🇪🇺will, Cairo is recalibrating the share of LNG towards🇪🇺whilst sending less to Asia.
In 2022, 🇪🇺countries will absorb 90% of deliveries, comapred with 80% in 2022.
In June,🇪🇬&🇪🇺Commission Presidents released a Joint Statement on energy cooperation

The🇪🇬🇪🇺bilateral cooperation focuses on several issues:
-Fostering sustainable development
-Combatting climate change and environmental degradation
-Ensuring energy security
-Facilitating a balanced and just green transition
During #COP27 🇪🇬🇪🇺signed an MoU on green hydrogen(🟢H2)

🟢H2 played a big part at COP27.
🇩🇪German Chancellor Olaf Scholz said that🟢H2
"is happening now” with the🇩🇪government announcing a first tender for green ammonia and budget for import scheme of more than €4 billion.
He presented the idea in a roundtable with🇪🇬President El-Sisi

But the reality on the ground says that it is🇪🇬LNG that is gaining attention as an alternative to the imports of🇷🇺Russian gas.
Countries in🇪🇺EU are accelerating the deployment of new import infrastructures.🇩🇪has just inaugurated its first floating terminal euractiv.com/section/energy…

🇪🇬is a major gas producer and has done much during the last years to ramp up production and expand its reserve base.
Onshore and offshore fields attracted IOCs like🇮🇹ENI,🇬🇧BP and🇷🇺Rosneft.
This has been key to respond to the higher🇪🇬domestic demand:
- 2011 48bcm
- 2021 62bcm
+29%

But now🇪🇬is doing all it can to boost LNG exports from its 2 terminals.
In August, amid a🥵heatwave across the region, the government rationed electricity to save around 15% of natural gas used in⚡️power generation and increase LNG exports to generate foreign currency.

🇪🇬has suffered from an acute foreign currency shortage, worsened by🇷🇺invasion of🇺🇦Ukraine, high global commodity prices, the collapse of tourism from🇷🇺and🇺🇦 and the sky-high costs of borrowing.
In March-Aug. urban and core inflation accelerated to 13.1% and 13.7 %📈
Meanwhile...

the war is catapulting food prices to unsustainable levels. Wheat's cost has increased by 44%, sunflower oil by 32%📈
🇺🇦grain exports have resumed, but the🇷🇺🇺🇦deal is hanging by a thread.
With a growing population of over 106 million, a food crisis will bring pure chaos in🇪🇬

The energy crisis is not just a🇪🇺phenomenon.
Authorities in Brussels and🇪🇺capitals need to understand this before the energy crisis generates spinoff effects, bringing more and more political crises.
Urging our neighbours to export additional gas has costs, for us and for them.