Egypt to Receive Algerian LNG Shipment Next Week

Egypt will next week receive LNG shipment from Algeria’s Sonatrach at Ain Sokhna port, Khalid Abdul Badi Chairman of the Egyptian Natural Gas Holding Company (EGAS) told Youm7 newspaper.

The country has already received two shipments of imported LNG at Ain Sokhna port. Badi told the newspaper that first shipment arrived in April while the second shipment from Noble Group arrived earlier this month.  

Late last year, Algeria and Egypt on Monday signed a natural gas deal. According to Egypt's Minister of Petroleum, as per the deal Algeria will supply 850,000 cubic meters of LNG in six shipments to Egypt during 2015.

Along with Noble Group and Sonatrach, Egypt has also signed LNG imports deals with Trafigura, Vitol and Gazprom.

In total EGAS has signed agreements to import 90 LNG shipments, 49 of which are going to be delivered in 2015 and 2016, Petroleum Ministry said earlier this year.

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.