According to data provided by S&P Global Platts Analytics and its cFlow trade flow software, the last Egyptian export of liquefied natural gas (LNG) dates back to March 11. With prices falling to record lows, the government has forced Shell, which operates the only LNG production unit located in Idku and all of its gas suppliers, to cut production upstream.
Even at the domestic level, demand is not keeping pace and as a result in May, production fell to less than 160 million m 3 / d, which is its lowest level in two years.
The country is one of a small group of LNG exporters exposed to the spot market who have been forced to cut production due to low prices. Currently, the JKM spot Asian LNG price is around $ 1.825 / MMBtu. The LNG break-even point in Egypt is $ 4.70 / MMBtu.
Meanwhile, Nigeria continues to flood the market. Almost half of the LNG vessels considered floating storage vessels are currently loaded with Nigerian LNG. With storage capacity inexorably dwindling, some analysts believe that at this rate, gas will soon fall below the 0 dollar mark.
Source: Agence Ecofin