Shell Could Supply LNG to Egypt

Shell is expected to start supplying LNG to Egypt this year, a senior company official said Wednesday.

Platts quoted Shell's Middle East and North Africa region vice president, Mounir Bouaziz, as saying that the company will supply the North Africa nation with 1 million mt/year of LNG, starting this year.

Speaking at the Gas Arabia Summit in Dubai, Bouaziz, said the agreement was an indication that LNG is becoming the solution of choice.

The regional LNG market was evolving rapidly due to flexible contract terms and because floating LNG receiving technology made possible the comparatively rapid "plug in" of gas supplies where needed, and in situations involving unforeseen changes in demand, Platts quoted Bouaziz as saying.

Egypt has been looking to source LNG from various sources as country’s domestic demand for gas rises amid declining supplies.

In December, Algeria and Egypt on signed a previously announced 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.

The two countries will begin fresh talks next month regarding supply of Algerian gas during 2016-2020, the ministry said adding that negotiations will start in Cairo and will be completed by February in Algiers.

Media reports also suggest that Egypt is likely to buy 35 shipments of liquefied natural gas (LNG) over the next five years from Russia’s Gazprom. The two parties are set to formally close the deal later this month which would allow Gazprom to ship seven shipments of LNG annually from 2015-2020.