Reuters: Egypt Expects LNG Deals with Shell and Total in New Bid Round

Egypt expects to agree additional liquefied natural gas (LNG) import deals with Shell and Total, and is close to paying BG Group more for the gas it produces offshore, its oil minister said on Monday.

Sherif Ismail outlined several measures intended to stave off Egypt's worst energy shortages in decades, including launching a new round of talks to secure LNG until 2020 when the country hopes to kick its reliance on the fuel.

"There is a very high possibility that Total and Shell will provide us with LNG for the period of two years from now," he said in an interview, noting that recent deals arranged with commodity trading firms and Algeria will meet just two years of demand.

The country of about 90 million relies heavily on gas to generate power for households and industry.

After four years of turmoil, rising gas demand has turned Egypt from net exporter to imminent importer while mounting oil company arrears put off new drilling and production investment.

The minister declined to give contract details with Shell and Total, saying Egypt expects to either launch a new bid round or begin direct talks for new LNG supply by the middle of the year.

"It is not clear yet if we will open a bid round or whether we will pursue direct negotiations," he said. MORE