Egypt Likely to Import About 8 mt of LNG in 2015-16

Egypt could import 7.79 million tons of LNG during the current Egyptian financial year which started on July 1, Reuters reported Friday citing planning ministry statement.

The value of the imports is expected to be $3.55 billion, the ministry said.

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

Last month, Egypt's EGAS issued tender to buy 45 cargoes of LNG for delivery in 2015-16. The deliveries would take place between October 2015 and December 2016 for the proposed second floating LNG terminal.

In May, Cairo issued a five-year tender to lease a second LNG import terminal.

Earlier this year, 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.

Höegh LNG had signed a Letter of Intent (LOI) with EGAS in May last year for the use of one of its FSRU as an LNG import terminal in the port of Ain Sokhna, located on the Red Sea's Gulf of Suez. The FSRU was scheduled to start operations in the third quarter of 2014 but was delayed