Gazprom , Egypt Discuss Further Cooperation in Gas Sector

Gazprom on Thursday discussed the issue of further expansion of LNG supplies to Egypt.

Alexey Miller, Chairman of the Gazprom Management Committee and Mounir Fakhry Abdel Nour, Minister of Industry, Trade and Investment of Egypt had a working meeting within the St. Petersburg International Economic Forum 2015.

The parties addressed the current issues and prospects for the bilateral cooperation development in the gas sector, namely the interaction expansion in the area of LNG supplies from the Gazprom Group portfolio to regasification terminals in Egypt, Gazprom said in a press statement.

Earlier this year, the two parties signed a deal under which Gazprom will supply 35 cargoes over five years with seven being imported every year. First supplies will begin in the second half of 2015.

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 procure LNG from various sources to cater to growing demand.

In addition to Gazprom, Egypt has also signed deals to buy LNG from Trafigura, Vitol, Noble Group and Sonatrach.