This story requires a subscription
This includes a single user license.
The Egyptian Natural Gas Holding Company said in a social media post that the deal was signed on Thursday.
This move is part of the company’s strategy to secure natural gas supplies and support various economic sectors in Egypt while ensuring the sustainability of local market needs.
EGAS said the charter of the second FSRU will help secure the growing domestic demand for natural gas, especially during peak summer periods, and aligns with directives to ensure stable electricity supplies from natural gas.
The company said the second FSRU has a storage capacity of 160,000 cbm of LNG and a regasification capacity of up to 750 million cubic feet per day.
According to EGAS, the unit will be stationed at the Sumed in Ain Sokhna, with operations expected to start in the second half of 2025.
EGAS did not reveal the name of the FSRU or the duration of the contract.
Energos Eskimo
Egypt currently imports LNG via Hoegh Evi’s 170,000-cbm FSRU, Hoegh Galleon, which is located in Ain Sokhna.
In May, Norwegian FSRU player Hoegh LNG confirmed it had signed a deal with Australian Industrial Energy (AIE) and EGAS to deploy the 2019-built FSRU Hoegh Galleon to Egypt.
Hoegh said the agreement with EGAS is for an interim period of June 2024 to February 2026 and will help Egypt to address potential gas shortages and fuel power plants during summer months.
LNG Prime recently reported, citing local reports, that EGAS is expected to take on charter the 160,000-cbm FSRU, Energos Eskimo, following its contract expiration in Jordan.
NFE confirmed in a statement on December 11 that it had chartered this FSRU to EGAS for a period of 10 years.
Jordan currently imports LNG via Energos Eskimo, which is located in Aqaba.
Energos Infrastructure, a part of US asset manager Apollo, owns the unit.
NFE charters this FSRU from Energos Infrastructure, and it probably sub-chartered the unit to EGAS.
Jordan has chartered the FSRU until 2025, while Egypt also uses this unit to secure natural gas supplies.
EGAS and Jordan’s National Electric Company (NEPCO) signed a cooperation agreement on Sunday under which Jordan will use the two FSRUs located in Egypt to import LNG.
Jordan will import LNG via Egypt until the end of 2026, after which it will use an onshore regasification LNG terminal currently being implemented in Aqaba.
(This article was updated on December 11 to say that NFE will charter Energos Eskimo for a period of 10 years.)