SOCAR prepares to enter Egyptian market

SOCAR Trading, a subsidiary of Azerbaijan’s state oil company SOCAR, is participating in an international tender to export 10.4 million tonnes of liquefied natural gas (LNG) to Egypt from June 2025 to June 2026, a source familiar with the matter told Anews.az.

Alongside SOCAR Trading, major global energy traders such as Aramco, Trafigura, Vitol and others are competing in the tender. Egypt plans to purchase LNG in 160 cargoes, which may be awarded to either one or multiple companies.

“SOCAR is aiming for a one-year contract with the possibility of a two-year extension. The results of the tender are expected to be announced by the end of June,” the source said.

SOCAR’s delegation began negotiations with Egyptian authorities in spring 2025.

Talks included not only potential oil, gas, and refined product supplies from third countries located near Egypt but also SOCAR’s possible participation in the development of Egypt’s oil and gas fields.

"Production at Zohr — Egypt’s largest gas field, operated by Italy’s Eni — has nearly halved over the past five years. The field now supplies less than a third of Egypt’s annual demand of over 60 billion cubic meters. In addition, gas imports from Israel have declined. These factors led Egypt to launch an international tender for LNG imports,” the source explained.

SOCAR Trading has extensive experience in LNG trading sourced from third countries.

The Zohr gas field, discovered 10 years ago with reserves exceeding 850 billion cubic meters, has been producing since 2017. Project participants include Eni (50%, operator), Rosneft (30%), BP (10%), and the UAE’s Mubadala (10%). Drilling of two additional wells is planned in the near future.

According to the source, Egypt has also expressed interest in involving SOCAR in developing new offshore and onshore hydrocarbon blocks, as well as in petrochemical infrastructure expansion.

N.Tebrizli