Egyptian Cabinet Approves Rosneft LNG Deal

The Egyptian cabinet on Thursday approved a deal to import LNG from Russia’s Rosneft, Amwal Al Ghad newspaper reported.

Rosneft Trading SA, a company of Rosneft Group, and the Egyptian Natural Gas Holding Company (EGAS) signed a master LNG supply and purchase agreement in August. The document was signed by the Chairman of Rosneft Management Board Igor Sechin and the Chairman of EGAS Eng. Khaled Abdelbadie during the visit of Egyptian President Hussein Abdel Fattah Saeed Khalil al-Sisi to Russia.

In July, the two companies agreed a term sheet for future supplies of LNG to the Egyptian company. The Russian energy firm will supply 24 shipment of LNG for a period of two years with effect from the last quarter of this year.

The Egyptian economy is facing severe gas shortage as local demand has ballooned in recent years amid declining domestic production. The government has been trying to procure LNG from various sources to cater to growing demand.