According to the sources, the unit will receive liquefied natural gas (LNG) shipments, convert them into gaseous form, and integrate them into the national grid.

“Egypt and Jordan are currently assessing the feasibility of jointly purchasing a gasification ship to meet the energy needs of both countries, with the vessel to be co-owned by the two nations,” one source said.

The second source said the step aims to acquire a ship either fully owned by Egypt or jointly owned by Egypt and Jordan, depending on the results of ongoing talks, adding that this would help bridge the gap between local production and consumption rates in both countries.

He noted that if the gas supply situation stabilizes in the two countries, the unit could be later leased out to other nations.

Gasification means converting LNG back into its gaseous state for direct consumption.

Egypt's natural gas production in May hit its lowest level since February 2018 as per the Joint Organizations Data Initiative (JODI) data. Therefore, the country has recently begun purchasing LNG cargoes as part of its summer urgent plan to avert power outages exacerbated by consecutive heatwaves.

Despite Egypt achieving self-sufficiency in natural gas in 2018, in recent months it has grappled with a shortage in natural gas supplies used for power generation, driven by the ongoing regional tensions and the unprecedented heatwave engulfing the country.

The soaring temperatures have led to a surge in electricity consumption across Egypt, as people heavily rely on air conditioning, leading to a record daily consumption rate of 38.5 gigawatts. This has, in turn, significantly increased the demand for gas to generate the required electricity.

Egypt receives the contracted LNG shipments either inside the Sumed port in Ain Sokhna or the regasification vessel in the Aqaba port.

In mid-July, the Ministry of Petroleum and Mineral Resources announced plans to expand its import capacity by adding a new floating storage and regasification unit to its port facilities at Ain Sokhna.

According to Al-Sharq Bloomberg, the state-owned Egyptian Natural Gas Holding Company (EGAS) has purchased at least one LNG cargo for immediate delivery to Jordan's Aqaba gasification plant, followed by transportation to Egypt via pipeline.

In May, EGAS leased the floating storage and regasification unit Hoegh Galleon from Norwegian firm Hoegh LNG until February 2026.

The ministry stated that the government aims to bolster domestic gas supplies during the peak summer demand.