Egypt cooperating with 4 int'l firms to study establishing LNG bunkering hub

Ahram Online , Saturday 29 Oct 2022

Egypt has signed a letter of intent with four international companies to conduct a feasibility study on the establishment of a liquefied national gas-bunkering hub in the country, a service that Egypt is planning to provide for ships navigating the Suez Canal.

Egypt s Suez Canal
File photo: Egypt s Suez Canal. Al-Ahram


The letter was signed by the Egyptian Natural Gas Holding Co. (EGAS) and Shell Global, Pyramid Navigation, Infinity Solar, and Eagle Oil & Gas, the Ministry of Petroleum and Mineral Resources announced in a statement on Saturday.

The deal also includes studying the possibilities of establishing a joint company to carry out the study and explore the best ways to implement the project.

Egypt seeks to capitalise on its location to enhance its role as a regional centre for energy trade, especially clean resources, in line with the country's plans to maximise the use of clean and low-carbon energy, Minister of Petroleum and Mineral Resources Tarek El-Molla commented on the step.

El-Molla said Egypt can afford to be a hub for fuelling ships with liquefied national gas due to its strategic location, the existence of the Suez Canal as a global navigation route, and the availability of liquefied natural gas in the country.

Egypt achieved self-sufficiency in natural gas in late 2018 thanks to huge gas discoveries and production.

The new cooperation, the petroleum minister explained, opens new rooms for EGAS to become "a major supplier of liquefied natural gas for ships transiting Egypt and neighbouring countries."

According to Mohamed Abdel-Aziz, adviser to the president of the Suez Canal Economic Zone (SCZone) for ports, Egypt is planning to provide fuelling services to ships navigating the Suez Canal starting the first quarter of 2023.

The new services will be provided at Port Said and Suez in the northern and southern areas of the canal respectively, Abdel-Aziz said in remarks reported by the Egyptian state news agency MENA in mid-October.

According to Abdel-Aziz, up to new 25 services are to be available for ships transiting the Sokhna Port, located south of the Suez Canal, including medical evacuation, marine supply, and minor emergency repair, as well as the provision of food, water, and oil.

The Suez Canal – the fastest artery between Europe and Asia and through which around 12 percent of global trade passes – is one of the main sources of foreign currency for Egypt.

The 193-kilometre-long international waterway brought in a record $7 billion in revenues in FY2021/22, up from $5.8 billion in the previous FY.

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