Reuters: Egypt's LNG import ambitions thrown into disarray

Egypt's hope of importing liquefied natural gas to stave off an energy crunch this summer may fall through after a Norwegian firm pulled out of a deal to install an LNG import terminal, sources with knowledge of talks between Cairo and the company said.

If it fails to secure a means of importing LNG, Egypt would have no place to turn for fuel supplies as already painful shortages are set to become more acute with the approach of summer.

The latest setback came when Hoegh LNG, which was recently awarded the contract to provide a floating terminal, rejected the commercial terms offered by state-run gas company EGAS, the sources said.

The tender process to find a company to provide the terminal began around 18 months ago, well before the army toppled Islamist President Mohamed Mursi last July.

Hoegh LNG's chief concern was the lack of financial guarantees to underpin project costs, the sources said.

The cash-strapped government's financial troubles have forced Cairo to delay payment of debts to foreign oil companies. MORE