Albawaba: Europe, be jealous: Egypt to obtain Russian gas at favorable rate

Egypt has obtained a favourable rate for the 1m BTUs of gas, which will be sent in seven shipments from the Russian Gazprom Company during the coming summer months, according to an official from gas holding company EGAS.

EGAS and Gazprom reached an agreement to continue supplying Russian liquefied natural gas (LNG) to Egypt during 2015. The agreement will allow for grace periods to repay the value of the debt.

The Ministry of Petroleum will negotiate with Gazprom in order to ensure continuous gas supplies to Egypt at a rate that is lower than market prices after 2015, according to the official.

Egypt has been negotiating with Algeria’s Sonatrach oil firm to import liquefied gas shipments during past months, in an effort to meet the needs of electricity plants. However, negotiations have been halted following the US decision to impose sanctions on Russia following the Crimea crisis, Youssef said, adding that the decision has urged the EU countries to consider importing gas from Algeria.
MORE