Egypt to Get Free LNG from Qatar

Egyptian government has said that Qatar will provide five LNG shipments free to the North African nation.

Various media reports suggest that the move comes as Qatar wants to help Egypt overcome its fuel shortage. The shipment would begin around the end of July.

Egypt is in need of natural gas and other sources of fuel to address the problem of frequent power shortages across the country.

At current prices the Qatari cargoes would fetch about $321 million on the open spot market, based on a typical Qatari shipment of 210,000 cubic metres and prevailing Asian spot prices, Reuters said.

Egypt will take a share of natural gas produced by foreign firms for its use and Qatar will export LNG directly to these companies’ customers. BG Group, a stakeholder in the Idku LNG export terminal, is expected to benefit from the swap deal between Qatar and Egypt, Reuters added.