Egypt Finalises LNG Deal With Gazprom

Egypt on Tuesday signed a deal with Gazprom to import 35 LNG cargoes, country’s Petroleum Ministry announced.

As per the deal, Egyptian Natural Gas Holding (EGAS) will import these 35 cargoes over five years with seven being imported every year. First supplies will begin in the second half of 2015.

With this deal, EGAS has signed agreements to import 90 LNG shipments supplied by five foreign companies, 49 of which are going to be delivered in 2015 and 2016, Petroleum Ministry said.

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

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 source LNG from various sources to cater to growing demand.

Also, the government is looking to encourage foreign energy firms to boost investment in local hydrocarbon sector. It is in the process of clearing previous dues it owes to foreign firms. The Egyptian government’s total dues owed to foreign oil companies stood at $3 billion by the end of 2014.