A huge ship arrives in Egypt to help solve the electricity crisis

Egypt – Egyptian media reported that a shipment of liquefied gas arrived Monday morning in the Ain Sokhna area to begin pumping into the national gas network in order to solve the power outage crisis.

She added that the LNG tanker is carrying quantities estimated at about 3.5 billion cubic feet of gas, which will be converted from liquefied gas to natural gas and will be pumped into the Egyptian national gas network during the current week.

According to the media, the tanker, flying the Maltese flag, left an American port in the middle of last month, loaded with quantities of liquefied gas, heading to the Ain Sokhna marine dock belonging to the SUMED Company.

Last May, the Egyptian Natural Gas Holding Company (EGAS) announced contracting with the Norwegian company Hoegh LNG to lease the floating unit Hoegh Galleon for liquefied natural gas, with the aim of contributing to securing additional needs for local consumption during the summer months.

Reuters reported that “an Egyptian tender was awarded to purchase 17 shipments of liquefied natural gas for delivery during the summer, at a premium of $1.6 to $1.9 over the standard price of the Dutch gas trading platform.”

The most populous Arab country plans to buy about 20 shipments of liquefied natural gas to cover the growing demand for energy during the summer.

The sources said it is seeking three more cargoes for delivery in August and September.

The tender that was completed represents Egypt’s largest LNG purchase in years and returns it to the status of a “net importer” of gas.

Egypt is suffering from a shortage in gas supplies that has led to a wave of power outages and the forced temporary closure of chemical and fertilizer factories.

The Egyptian Natural Gas Holding Company (EGAS) has requested the delivery of 17 LNG cargoes, including 7 cargoes in July, 6 in August, and 4 in September on a delivered-ex-ship (DES) basis, with deferred payments of up to 6 months.

Natural gas supplies that help Egypt generate electricity have dwindled as its population of 106 million and urban growth have increased energy needs, while higher demand for cooling during the summer has led to increased consumption, according to Reuters.

Source: Agencies