Qatar to give Egypt five natural gas cargoes over the summer

Ahram Online, Monday 10 Jun 2013

The gas-rich Gulf state will grant Egypt five shipments of gas to meet its energy needs over the summer

Qatar’s Prime Minister and Foreign Minister Sheik Hamad bin Jassim Al Thani (R) talks with Egypt’s Prime Minister Hisham Kandil after a news conference in Doha, April 10, 2013 (Photo: Reuters)

Egypt will be granted five shipments of Qatari Liquefied Natural Gas (LNG) as of end of July to meet the country’s energy needs in the current summer, Egyptian Ministry of Petroleum stated on Monday.

The statement did not give the size of the shipments that would be fully delivered by mid-September.

The five LNG’s cargos are part of the gas swap deal signed between Cairo and Doha under which Egypt will buy the share of foreign companies in locally extracted LNG. The foreign companies will then take the LNG being imported from Qatar.

The Qatari fuel grant follows the visit of the recently-appointed Egyptian Minister of Petroleum Sherif Hadarra to Doha on Sunday to negotiate the final price per million British Thermal Unit (BTU).

According to Al-Ahram daily newspaper, Qatar has requested for the Egyptian side to pay $13 per million BTU, while Egyptians want to reduce the price to reach $8 per million BTU.

Notably, Qatari LNG amounts will be provided to Egypt's power stations to avoid the intermittent blackouts seen by its citizens over the last month.

Egypt currently has around 220 electricity generators nationwide, which consume roughly 100 million cubic metres of fuel on a daily basis, according to recent statements by the electricity minister.

The government recently increased the daily quantities of natural gas supplied to power stations from 77 million to 84 million cubic metres in an attempt to meet rising electricity demand.

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