Rosneft Trading, a unit of Rusia’s Rosneft, has reportedly agreed to supply 10 liquefied natural gas cargoes to the Egyptian Natural Gas Holding Company (EGAS) by the end of the year.
The first delivery by Rosneft Trading to EGAS is expected in May, Reuters reports, noting that the company delivered three LNG cargoes in 2016.
Earlier in February, Egypt was reported to have already secured 100 LNG cargoes for delivery in 2017 .
The country’s natural gas company EGAS has also set aside around US$2.2 billion for LNG imports in 2017.
Egypt that has turned a net importer over the course of 2015, due to falling production, increased domestic consumption and gas shortages, has deployed two FSRUs in Ain Sokhna that serve as the country’s import terminals.
The Höegh Gallant FSRU, provided by Höegh LNG, began operations in April 2015, while the FSRU BW Singapore, provided by BW, has been in full operation since October 2015.
However, according to WoodMackenzie Egypt could add a cumulative 41 billion cubic meters a year of gas production by 2022, following the development of BP’s West Nile Delta and Atoll fields and Eni’s massive Zohr find.