Egyptian Government Yet To Provide Funds to EGAS for Intended LNG Imports

Egypt’s Ministry of Finance has yet to provide finance for LNG imports for power plants through the summer months, according to Khaled Abdel-Badie, Chairman of EGAS.

A report in Daily News Egypt says EGAS needs about $1 billion to finance 12 shipments of LNG.

Last month EGAs agreed to import 12 shipments of LNG, totaling 170,000 cubic meters, seven from Gazprom and five from France’s EDF. How the state owned firm is yet to seal the deal with the two companies due to lack of required funds, adds Daily News Egypt.

One shipment of LNG meets six days needs for power plants, which consume 500m cubic feet of gas per day, says Abdel-Badie. .

Egypt is currently facing a decline in gas production rates and a subsequent deficit of approximately 2 bn cubic feet per day. Current output stands at 4.9bn cubic feet, compared with 5.6bn feet for the same period last year, says Daily News Egypt.