State firm Egyptian Natural Gas Holding Company (EGAS) has signed a 10-year agreement with Hoegh Evi to have it deploy a floating LNG import unit near Alexandria on the Mediterranean, as the North African country struggles to meet soaring gas and power demand amid dwindling domestic production.
Hoegh Evi will deploy the LNG carrier, the Hoegh Gandria, at Sumed near Alexandria in late 2026, the company told Bloomberg in a statement on Monday. The conversion of Hoegh Gandria into a floating storage and regasification unit (FSRU) will begin immediately.
Egypt turned from a net LNG exporter to a net LNG importer at the end of 2024 as the country imported last year the highest number of LNG cargoes in years as it looked to ease the strain on its grid and industry amid energy shortages that led to rolling blackouts last summer.
Last year, Egyptian Natural Gas Holding sought to lease a liquefied natural gas import terminal from providers of FLNG units to get ahead of the scorching summer season that routinely triggers power blackouts due to the heavier load.
Höegh LNG Holdings Ltd announced in May 2024 an agreement between Höegh LNG, Australian Industrial Energy Pty Ltd (AIE), and Egyptian Natural Gas Holding Company (EGAS) for the deployment of the Floating Storage and Regasification Unit (FSRU) Hoegh Galleon, to support energy security in Egypt.
The new FSRU, Hoegh Gandria, will replace the Hoegh Galleon, which is currently Egypt’s only operational LNG import terminal.
Separately, Egypt has just launched a new oil and gas bid round and is inviting international companies to bid for 13 offshore and onshore blocks in a licensing round as it aims to boost domestic oil and gas production.
Companies are invited to bid on six new exploration areas and seven undeveloped discoveries. The undeveloped discoveries are in the Mediterranean, while the six exploration areas include three offshore exploration blocks in the Gulf of Suez and three onshore exploration areas in Egypt’s Western Desert.
By Charles Kennedy for Oilprice.com
More Top Reads From Oilprice.com
