Egypt to Buy LNG from Noble Energy

Cairo has signed a deal with Noble Energy to buy seven LNG shipments, Egypt's oil ministry said in a statement Monday.

As per the agreement, which was signed in the presence of Egypt’s Minister of Petroleum and Mineral Resources Sherif Ismail between EGAS and Noble, shipments would commence in April for two years.

Egypt is reeling under severe gas shortage due to falling domestic production amid rising usage. In recent months, Cairo has signed deals to source gas from various sources.

In December, Algeria and Egypt signed a previously announced natural gas deal. As per the deal Algeria will supply 850,000 cubic meters of LNG in six shipments to Egypt during 2015. The two countries will begin fresh talks shortly regarding supply of Algerian gas during 2016-2020, the ministry said adding that negotiations will start in Cairo and will be completed by February in Algiers.

Cairo is also expected to sign a deal to import LNG from Gazprom. Egypt is likely to buy 35 shipments of LNG over the next five years from the Russian company. Shell is another company likely to begin supplying gas to Egypt this year.

Earlier this month Platts quoted Shell's Middle East and North Africa region vice president, Mounir Bouaziz, as saying that the company will supply Egypt with 1 million mt/year of LNG, starting this year.

Egyptian Natural Gas Holding Co (EGAS) has also signed a contract with Trafigura to import LNG. 

On Monday, Cyprus and Egypt signed a MoU pertaining to cooperation in the field of oil and natural gas. The agreement, signed by Egyptian petroleum minister Sherif Ismail and Cypriot energy minister Yiorgos Lakkotrypis in Cairo, aims to promote cooperation between the two countries in the field of development and exploitation of the discovery of Aphrodite gas.