Engie Signs Egypt Agreements

French utility giant Engie said it executed a cooperation agreement on LNG imports into Egypt with Egyptian state gas company Egas.

The agreement was one of two energy agreements signed on April 18 by Engie deputy CEO and chief operating officer Isabelle Kocher during a state visit to Egypt by French President Francois Hollande. There was no mention by Engie of how much LNG might be supplied by it to Egypt.

Egypt began importing LNG for the first time in 2015, when its total imports were 2.6 million metric tons - of which half from Qatar.

France's Engie in fact has a current long-term agreement to import 3.6 million metric tons/yr from Egypt from 2005 to 2025 on a free-on-board basis from the BG-Shell-run Egyptian LNG export plant at Idku. However because no feed gas was available to either of Egypt's two export plants, no LNG at all was exported by Egypt during 2015, and consequently Engie was unable to lift any cargoes from Egypt.

The other agreement signed by Kocher was for financing and development by Engie of two 50 MW solar photovoltaic projects and two same-sized wind projects. They form part of the Egyptian government's ambition to increase the share of renewables in Egypt's energy mix to 20% by 2022. 

Engie is already developing, with partners Orascom and Toyota Tsusho, a  250 MW build-own-operate wind project in the Gulf of Suez. The French firm says it is also keen to develop its energy services activities in Egypt and participate in the country's 'sustainable cities' programme.

Mark Smedley