Gazprom Delivers First LNG Cargo to Egypt

Gazprom delivered its first LNG cargo to Egypt on Sunday, Platts reported citing market sources.

The LNG was sourced from Qatar's Ras Laffan liquefaction facilities on July 22.

In March, Gazprom and state owned EGAS signed a deal under which the Russian firm will supply 35 cargoes over five years with seven being imported every year. First supplies were set to begin in the second half of 2015.

Demand for gas in Egypt has increased substantially in recent years amid declining local output. For the short term, the government is trying to procure LNG from various sources to cater to growing demand. In recent months, the government has floated multiple tenders to imports LNG to fill up the gap.

In addition to Gazprom, Egypt has also signed deals to buy LNG from companies such as Trafigura, Vitol, Noble Group and Sonatrach.