As the sociopolitical situation in Egypt deteriorates, the country’s energy infrastructure is also suffering. Although winter blackouts currently frustrating the population are being blamed on seasonal maintenance, a tight natural gas supply situation could exacerbate matters this summer when air conditioning-demand peaks.

In late January, BG Group was ordered to direct gas away from LNG exports and toward domestic use, which left BG’s international customers in the lurch. [Additional details here] Political risk has been sufficiently high to slow foreign exploration and production investment needed to bring new supply sources online. The situation going forward looks grim.

“The expectation for next summer is the darkest summer that Egypt has ever seen,” said Mohamed Shoeib, managing director of the energy division at Egypt’s Citadel Capital and former head of the Egyptian Natural Gas Holding Co.. “It is clear that the demand for electricity needed is more than what” the government can provide. – Wall Street Journal