Egypt Seeks Third FSRU

Egypt is reported to have launched a tender for a third floating LNG import terminal to meet anticipated growth in demand from power plants.

Daily News Egypt on June 26 quoted the petroleum minister, Tarek El-Molla, saying that a tender for the charter of a third floating storage and regasification unit (FSRU) would be issued this week; he told the news service that the vessel would have a regasification capacity of 750mn ft³/d.

Reuters on June 29 reported that the tender was launched June 28, with offers from companies due within two weeks, citing an official from state-run gas company Egas. NGA was unable to get confirmation direct from Egas or shipowners.

Egypt has two FSRUs in service: the first, chartered from Hoegh LNG, started up in April 2015; the second from BW Gas began operations in October 2015, both under five-year charters to Egas.

The storage capacity of each existing FSRU is 170,000 m³. BW Singapore’s regas capacity is 750mn ft³/d (21.25mn m³/d), while Hoegh Gallant’s is 500mn ft³/d – so a combined maximum of 1.25bn ft³/d. Both are berthed at the Red Sea port of Ain Sokhna, where the third is also expected to berth.

Daily News Egypt also reported June 27 that the ministry has begun negotiating for the supply of 12 more LNG cargoes during 2H 2016, so two extra per month. El Molla said that Egas already had signed contracts to import 80 LNG cargoes during 2016 from firms including Sonatrach, Gazprom, Vitol and other traders.

Mark Smedley | www.naturalgasafrica.com