Egypt to Buy Six LNG Cargoes from Algeria

Egypt will import six cargoes of LNG from Algeria between April and September next year, Egypt's oil ministry said on Thursday.

The agreement regarding this would be signed by the end of this month in Algeria, the ministry added.

The decision was taken during a meeting between Sherif Ismail, Egypt’s Minister of Petroleum and Mineral Resources and Dr. Youcef Yousfi, Minister of Energy and Mines of Algeria in Cairo.

Earlier this year, media reports suggested that Egypt was supposed to buy only five cargoes. 

Egypt has been facing sever energy shortage due to falling gas production amid rising domestic demand and this deal could help fill the gas to some extent. The North Africa nation is also taking to other suppliers to import LNG to meet domestic gas demand.

To allow for smooth import of the fuel, last month, Egyptian Natural Gas Holding Company (EGAS) finalised a five year deal with Norway’s Hoegh LNG for supply of FSRU by the end of first quarter of 2015.

In May this year, Höegh LNG signed a Letter of Intent (LOI) with EGAS for the use of one of its FSRU as an LNG import terminal in the port of Ain Sokhna, located on the Red Sea's Gulf of Suez.

The FSRU was scheduled to start operations in the third quarter of 2014 but was delayed.