Ministry of Petroleum Rents Liquified Natural Gas Unit

On Thursday, the Egyptian Ministry of Petroleum announced that EGAS, the country’s natural gas holding company, has finalised an agreement with Norwegian Hough LNG aimed at strengthening Egypt’s energy supply for the summer. As per this agreement, the Egyptian government will be renting a floating unit for liquified natural gas (LNG) from the private Norwegian company from June 2024 to February 2026. This unit will be used for storage and regasification of liquid natural gas, and will be deployed in Ain Sokhna.

This deal will play a crucial role in meeting domestic energy consumption in the summer months. According to the Joint Organizations Data Initiative (JODI), Egypt’s 2023 natural gas production fell to its lowest levels since 2017. This prevents a significant challenge for reaching the government’s goal of becoming a regional gas supplier.