Egypt, Russia Sign LNG Deal

Egypt's EGAS has signed LNG purchase deal with Russia’s Gazprom, Egypt’s  trade, industry and investment minister told RIA Novosti Monday.

"The agreement was signed on Saturday between the Egyptian [state] gas company and Gazprom on the supply of LNG shipments annually for five years," Mounir Fakhry Abdel Nour said.

Egypt would welcome credit from Russia, but has not asked for it and will not pressure Moscow to provide it, Egypt's industry, trade and investment minister told RIA Novosti.

In the past few weeks, the government has signed LNG import deals with Algeria and with Trafigura to import LNG.

In December, Algeria and Egypt signed a previously announced natural gas deal. As per the deal Algeria will supply 850,000 cubic meters of LNG in six shipments to Egypt during 2015. The two countries will begin fresh talks shortly regarding supply of Algerian gas during 2016-2020, the ministry said adding that negotiations will start in Cairo and will be completed by February in Algiers.

Due to lack of LNG processing plant, Cairo has been facing difficulties in securing imports. However, to ease the import process, Egypt signed a FSRU deal last year.

Late last year, Norway’s Hoegh LNG finalised a five year deal with Egyptian Natural Gas Holding Company (EGAS) to supply FSRU by the end of first quarter of 2015.

In May last year, Höegh LNG signed a Letter of Intent (LOI) with EGAS for the use of one of its FSRU as an LNG import terminal in the port of Ain Sokhna, located on the Red Sea's Gulf of Suez.

The FSRU was scheduled to start operations in the third quarter of 2014 but was delayed.