Egypt Plans to Rent Third FSRU by Early 2017

Egypt is mulling renting a third FSRU by end of next year or early 2017, Reuters reported Egyptian Natural Gas Holding Company (EGAS) head as saying.

Egypt's third FSRU will be used to meet the natural gas needs of industry and boost electricity generation, head of the state-run EGAS gas board, Khaled Abdel Badie, told a news conference.

To facilitate the import of LNG Egypt has taken delivery of two floating LNG terminals. Last month EGAS took delivery of FLNG terminal from BW Group which is expected to start operation later this month. Last year EGAS signed an agreement with Höegh LNG to lease the first terminal, which started operation in May this year.

The North African nation has become an importer of gas due to falling domestic gas production amid rising demand. The imported gas is expected to fill the demand gap in the short term while the government works to boost production of local gas.