Egypt, BP Sign LNG Deal

Egypt has agreed to purchase 16 LNG cargoes from BP, news agency Reuters reported Monday.

The final quantity is less that 21 cargoes that BP was expected to supply. The fuel will be supplied through 2015 and 2016.

The Egyptian economy is facing severe gas shortage as local demand has ballooned in recent years amid declining domestic production. For the short term, the government is trying to procure LNG from various sources to cater to growing demand.

Egypt has signed deals to buy LNG from Gazprom, Trafigura, Vitol, Noble Group and Sonatrach.

In May, Cairo floated tender to lease a second LNG import terminal. Recently Hoegh Gallant floating storage and regasification unit (FSRU) from Norway's Hoegh LNG commenced commercial operations. The FSRU arrived in Egypt on the Gulf of Suez in early April. In November last year, Hoegh LNG finalised a five year deal with EGAS to supply FSRU by the end of first quarter of 2015.