Egyptian Natural Gas Holding Co (EGAS) has confirmed that it will rent a third floating storage and regasification unit (FSRU) within the next 18 months, highlighting the extent to which the country has switched from exporting to importing LNG to meet energy shortages at home.
Egypt started to import LNG this year, chartering the Höegh LNG-owned FSRU Hoegh Gallant in April and taking delivery last month of the BW-owned BW Singapore. Both FSRUs are based at Ain Sokhna.
EGAS chairman Khaled Abdel Badie has announced that Egypt's will charter a third FSRU to import LNG for industrial use and power generation from late next year or early in 2017.
Hoegh Gallant is chartered for five years and can handle up to 3.5 million tonnes a year. BW Singapore, which is also chartered for five years, can receive up to 5.5 mta.
Despite holding sizeable reserves, Egypt urgently needs to import gas to meet its industrial needs, having diverted its own supplies to the domestic market.
EGAS has signed supply deals with traders including Trafigura, Vitol and the Noble Group to meet its needs through 2016.