Egypt Launches Tender to Lease Second LNG Terminal

Egypt is continuing its efforts to increase energy security, launching a tender to lease a second LNG import terminal and negotiating with regional players to buy more gas.

In its first quarter results released on Tuesday, Noble Energy said that initial sales of gas from its Tamar field to Dolphinus Holdings for Egypt’s domestic consumption should commence later in 2015, depending upon full regulatory approvals and finalisation of pipeline transport agreements. The American company also said that the compression project meant to increase peak deliverability at the field is nearing completion. 

Meanwhile, Egyptian authorities are trying to secure a second LNG import terminal, which would follow the first import terminal arrived in Egypt from Norway’s Hoegh in April. 

“We launched yesterday a tender to lease a second LNG import terminal for a period of five years. We have sent it to eight international companies and we expect to get a reply within a week," Khaled Abdel Badie, Chairman of Egyptian Natural Gas Holding Company, told Reuters on Monday. 

According to The Cairo Post, EGAS said that Sonatrach should deliver 3 bcm of LNG by next week. The country is diversifying its gas sources, with LNG cargoes coming from Algeria, the Netherlands, the East Med, and Russia. 

Also on Tuesday, Espen Barth Eide, UN Secretary General’s Special Adviser, sent conciliatory messages, saying that the two Cypriot leaders - Akinci and Anastasiades - are seriously dedicated and committed to solving the Cyprus problem. He said that both Turkey and the European Union will have a role in the negotiations.  

Last week, Cyprus, Egypt and Greece agreed to increase economic ties and business relations, while joining forces to tackle terrorism in the Eastern Mediterranean and in the Middle East.