BP, Egypt Reportedly Clinch LNG Cargo Deal for 2015/2016

UK-based BP and Egypt reportedly agreed a liquefied natural (LNG) supply deal through 2015 and 2016. 

According to Reuters, BP will supply 16 cargo units under a deal with the state-run EGAS. Previously, negotiations envisaged 21.

All in all, BP is intensifying its ties with Egypt. In May, it increased its stake in the West Nile Delta (WND) project in Egypt, buying 17.75% of in the ongoing Phase 1 from DEA. The project is entering into its capital intensive phase. 

With the deal, BP will be the second supplier of LNG to Egypt after commodity trader Trafigura, which won the right to supply 33 cargoes in January 2015. 

The North African country is trying to fill the gap stemming from decreased production in the aftermath of the so-called Arab Spring. Commentators expect the country to significantly increase production in the medium to long term. 

In 2014, BP Statistical Review estimated Egypt’s proved reserved at 65.2 trillion cubic feet, listing it at the third place in Africa after Nigeria (179.4 tcf) and Algeria (159.1 tcf). Egypt is indeed expected to have more gas than Libya (54.7 tcf)