Shell, EGAS ink Egypt LNG bunkering pact

LNG giant Shell is looking to further expand its global LNG bunkering network and has signed a deal with Egypt’s EGAS and other partners to provide bunkering services in Egypt.

Shell, EGAS, Pyramid Navigation, Affinity, and Eagle Gas signed a letter of intent to cooperate in supplying ships with LNG fuel, according to a statement by Egypt’s Ministry of Petroleum and Mineral Resources.

Under the deal, the partners would look into establishing a joint venture to provide LNG bunkering services, the statement said.

Egypt is looking to become an LNG bunkering hub and to supply LNG-powered ships transiting the Suez Canal.

Earlier this year, Norway-based small-scale player Kanfer Shipping signed a deal with Egypt’s EGAS to charter one LNG bunkering vessel to a new joint venture which aims to provide bunkering services in the Suez Canal.

More than 20,000 ships are transiting the Suez Canal per year. In addition, Egypt has the Damietta LNG facility and the Shell-operated Egyptian LNG facilities, located at Idku.

The statement said that the new partnership with Shell and partners provides an opportunity for EGAS to be a major supplier of LNG for ships transiting Egypt and neighboring countries.

The statement did not reveal any additional information regarding the deal.

A spokesperson for Shell told LNG Prime that the company would not be commenting on the development at this stage.

Shell has already developed a worldwide LNG bunkering network and has bunkering vessels in Singapore, Europe, and the US, with more on order.

In August, Shell and Israel’s shipping firm Zim signed an LNG bunkering deal worth more than $1 billion. Prior to that, the firm signed a bunkering deal with France’s CMA CGM.

Besides supplying ships, Shell is also building a large fleet of LNG-powered vessels.

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