Hoegh LNG signs FSRU deal with Egypt

Hoegh LNG has signed an agreement with Australian Industrial Energy (AIE) and state-owned Egyptian Natural Gas Holding Company (EGAS) to deploy the FSRU Hoegh Galleon to Egypt, it announced on May 2 via a LinkedIn post.

Egypt, traditionally a gas exporter, has been compelled to import LNG due to a shortage in the domestic market. Rising domestic demand, especially during peak summer months, coupled with declining gas output, has necessitated Egypt's shift towards LNG imports for the first time since 2018.

Under the terms of the agreement, the FSRU Hoegh Galleon will be stationed in Ain Sokhna, Egypt, for an estimated period of 19-20 months. Following its deployment in Egypt, the FSRU is slated to be relocated to AIE's LNG terminal at Port Kembla, Australia. 

AIE’s Port Kembla import terminal, located in New South Wales, has a planned capacity of more than 100 petajoules/year of gas. The LNG terminal's floating storage and regasification unit could receive LNG from existing liquefaction plants in Western Australia or Queensland, as well as cargoes from overseas.