The clap:
The floating LNG regasification unit the government will lease from Norwegian maritime energy infrastructure developer Höegh LNG until February 2026 is set to anchor in Ain El Sokhna next week, Asharq Business quotes a state source as saying. The unit will kick off operations after an initial seven-day trial period.
So what:
Cabinet will shell out USD 90 million annually to lease the vessel. Egypt is in coming days planning to issue an international tender to import about 15 shipments of LNG through October. The import strategy — expected to average around USD 120 million a month for three shipments — follows implementation of daily power cuts in a bid to save as much USD 300 million per month.
Coming at an opportune time:
This comes as the country wrestles with its domestic energy supply after becoming a net importer of LNG in recent months following a fall in domestic gas production. The decrease in national gas supplies led several companies including Abu Qir Fertilizer, Sidi Kerir Petrochemicals, and Kima to shutter their factories temporarily last week.
Progress on the supply gap’s resolution:
On Thursday, the Oil and Electricity Ministries gradually expanded LNG supplies to a number of fertilizer firms, and yesterday the Egypt Kuwait Holding-owned Alexandria Fertilizer Company said it had begun to resume operations after stabilization of gas pressure.
