Egypt to buy 55 LNG cargoes

[Bavaria]

Egypt to buy 55 LNG cargoes

Egypt's EGAS will purchase 55 cargoes of LNG from seven companies, the gas company announced on Monday.

Successful bidders include Shell, PetroChina, Noble Group, Trafigura, Vitol, EDF Trading and Gas Natural.

EGAS launched the tender for 45 LNG cargoes in July. The 55 cargoes settled for purchase, 10 more than initially planned, represent 4.68 bcm of natural gas, or about a tenth of the country's annual consumption.

The cargoes are designated for shipment in 2015 and 2016. The purchase price was not immediately made public.

With oil and gas production falling in recent years, Egypt has become a net importer of gas

The North African country began LNG imports in April following its receipt of a floating terminal from Norway's Hoegh LNG.

EGAS has struck a number of LNG import deals this year, including an agreement to purchase 35 cargoes from Russia's Gazprom.



Egypt to buy 55 LNG cargoes | The Oil & Gas Year

 

[Bavaria]

[h=1]Egypt Overview[/h]

Despite the political upheaval that led to the ouster of its long-time president, Hosni Mubarak, and the replacement of its Minister of Petroleum, Sameh Fahmi, Egypt has benefited from a period of renewal on the energy front.

During the global financial crisis, Egypt flexed its competitive muscles and attracted a flurry of foreign direct investments geared to satisfy the country’s surging demand for fossil fuels. The Ministry of Petroleum negotiated 17 new petroleum agreements in recent years worth approximately $3.3 billion.


Egypt does not share the enormous oil reserves of its MENA region neighbours – its production peaked at 935,000 bpd in 1996 and output has declined gradually since, despite a slight increase in 2009. Nevertheless, international oil companies remain confident in Egypt’s remaining potential.
A total of 39 operators currently hold concessions on the Nile Delta and Mediterranean Sea. OPEC predicts that the market’s production will dwindle to 600,000 bpd in 2014, a sign that the country’s prosperity hinges upon ongoing exploration campaigns.

Egypt | The Oil & Gas Year