Egypt to Float Tender for Second LNG Terminal

Egypt is likely to issue a tender for a second liquefied natural gas (LNG) import terminal in the coming weeks, sources have told news agency Reuters.

The country has been facing sever energy shortage due to falling gas production amid rising domestic demand compelling the Cairo to seek imported LNG to fill the gap.

Earlier this month, Egypt agreed to import six cargoes of LNG from Algeria between April and September next year. The agreement regarding this would be signed by the end of this month in Algeria, Egypt’s oil ministry said.

To allow for smooth import of the fuel, last month, Egyptian Natural Gas Holding Company (EGAS) finalised a five year deal with Norway’s Hoegh LNG for supply of FSRU by the end of first quarter of 2015.

In May this 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.