Egypt agrees with Russia's Rosneft to import 10 LNG cargoes in 2017

Ahram Online , Wednesday 22 Mar 2017

The first delivery is expected to arrive in Egyptian ports at the beginning of May

A logo of Russian state
A logo of Russian state Reuters

Russia's top oil producer Rosneft has agreed with the Egyptian gas company (EGAS) to provide Egypt with 10 shipments of liquefied natural gas this year, Al-Ahram daily reported on Wednesday, citing an anonymous source at the petroleum ministry.

The deal comes as "part of the ministry's plans for imports from a number of global suppliers, to satisfy the growing demand for the product during the summer period," the source said.

The first delivery from the Moscow-based company is expected to arrive in Egyptian ports at the beginning of May, according to the report.

Last month, the Egyptian oil minister signed a $1 billion contract with three international companies, including Rosneft, to import 45 shipments of LNG.

The shipments will range between 138,000 and 156,000 cubic metres, and Egypt will have a grace period of six months to pay for them, minister Tarek El-Molla said.

Egypt was once an energy exporter but the country has in recent years become a net importer because of declining oil and gas production and growing consumption.

Last year, Rosneft supplied four liquefied natural gas cargoes to the Egypt, according to the Russian state-run Tass news service.

In June 2016, EGAS told Reuters that Egypt aims to import between 110 and 120 shipments of liquefied natural gas in 2017.

In December, Rosneft bought a 30 percent stake in the giant Egyptian gas discovery, the Shorouk concession, by Italian producer Eni. 

Short link: