Rosneft, EGAS Sign LNG Deal

Rosneft Trading SA, a company of Rosneft Group, and the Egyptian Natural Gas Holding Company (EGAS) signed a master LNG supply and purchase agreement, the Russian firm announced Thursday.

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 accordance with this document, the parties plan to organize the supply of LNG to the Arab Republic of Egypt,” Rosneft said.

Cooperation with EGAS marks Rosneft Group's entry into the world LNG trading market, the company said, adding that implementation of the provisions of the signed documents will, in the long term, open access for Rosneft Group to the Egyptian gas market which has a significant growth potential.

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.

 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.