Egypt reaches deal to rent second gas import terminal

The state-owned Egyptian Natural Gas Holding Company (EGAS) has chosen Norwegian-Singaporean firm BW Gas to provide Egypt with a floating natural gas import terminal, the Petroleum Ministry announced Monday.

The vessel, which can process 750 million cubic feet of natural gas per day, is due to arrive in the Ain Sokhna port at the end of September and will be operational in October. The rental agreement will last for five years.

Egypt, once a natural gas exporter, is suffering from a gas shortage that has often left the country without sufficient fuel to operate factories and power plants at full capacity. The country’s gas infrastructure is designed for exporting gas, forcing the government to rent floating import terminals in order to bring more fuel into the country.

A rental terminal provided by Norwegian firm Hoegh LNG came online at the end of April, but the industrial sector is still suffering from fuel shortages.

In February, the Petroleum Ministry announced plans to allow the private sector to import and re-sell natural gas, permitting companies to use government infrastructure in return for a transit fee.

According to Monday’s Petroleum Ministry statement, EGAS president Khaled Abdel Badie is seeking bids to supply 45 shipments of gas to the new terminal.