By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
DailynewsegyptDailynewsegypt
  • Home
  • Business
    BusinessShow More
    As Egypt decides to establish tourist chambers, federation, what is in it for tourism industry?
    As Egypt decides to establish tourist chambers, federation, what is in it for tourism industry?
    June 6, 2023
    FRA extends deadline for electing Egyptian federation for securities’ board for 3 months
    FRA extends deadline for electing Egyptian federation for securities’ board for 3 months
    June 6, 2023
    New MoU signed to develop SMEs in industrial zone in East Port Said
    New MoU signed to develop SMEs in industrial zone in East Port Said
    June 6, 2023
    CI Capital records revenues of EGP 1.6bn in 1Q 2023
    CI Capital records revenues of EGP 1.6bn in 1Q 2023
    June 6, 2023
    International Conference of Institute of National Planning discusses various types of governance
    International Conference of Institute of National Planning discusses various types of governance
    June 6, 2023
  • Politics
    PoliticsShow More
    Arab League calls on Security Council to shoulder its responsibilities, oblige Israel to end occupation
    Arab League calls on Security Council to shoulder its responsibilities, oblige Israel to end occupation
    June 5, 2023
    Institute of Diplomatic Studies holds training course for diplomats from South Sudan
    Institute of Diplomatic Studies holds training course for diplomats from South Sudan
    June 5, 2023
    Al-Sisi participates in African meeting on mediation in Russian-Ukrainian crisis
    Al-Sisi participates in African meeting on mediation in Russian-Ukrainian crisis
    June 5, 2023
    Washington, Riyadh call for new ceasefire agreement in Sudan
    Washington, Riyadh call for new ceasefire agreement in Sudan
    June 5, 2023
    Ugandan president says 54 peacekeepers killed in Somalia deadly attack
    Ugandan president says 54 peacekeepers killed in Somalia deadly attack
    June 5, 2023
  • Interviews
    InterviewsShow More
    EFG Finance to launch unified platform gathering all its financing services: Alaa Al-Afifi
    EFG Finance to launch unified platform gathering all its financing services: Alaa Al-Afifi
    May 31, 2023
    I changed my artistic path to create ‘state of wonder’: Tarek Lotfi
    I changed my artistic path to create ‘state of wonder’: Tarek Lotfi
    May 25, 2023
    I adore Ramadan drama, ‘Telt Al-Talata’ series achieved great success: Ghada Abdel Razek
    I adore Ramadan drama, ‘Telt Al-Talata’ series achieved great success: Ghada Abdel Razek
    May 8, 2023
    We aim to establish Egypt as nearshore centre for Software AG for MET region: Rami Kichli
    We aim to establish Egypt as nearshore centre for Software AG for MET region: Rami Kichli
    April 29, 2023
    Egypt-Spain relations witness remarkable development in recent years: Spanish ambassador in Cairo
    Egypt-Spain relations witness remarkable development in recent years: Spanish ambassador in Cairo
    April 18, 2023
  • Culture
  • Opinion
  • Sports
  • Lifestyle
Reading: Egypt’s LNG import ambitions thrown into disarray
Share
Notification
Latest News
As Egypt decides to establish tourist chambers, federation, what is in it for tourism industry?
As Egypt decides to establish tourist chambers, federation, what is in it for tourism industry?
Tourism
FRA extends deadline for electing Egyptian federation for securities’ board for 3 months
FRA extends deadline for electing Egyptian federation for securities’ board for 3 months
Business
New MoU signed to develop SMEs in industrial zone in East Port Said
New MoU signed to develop SMEs in industrial zone in East Port Said
Business
CI Capital records revenues of EGP 1.6bn in 1Q 2023
CI Capital records revenues of EGP 1.6bn in 1Q 2023
Business
International Conference of Institute of National Planning discusses various types of governance
International Conference of Institute of National Planning discusses various types of governance
Business
Aa
Aa
DailynewsegyptDailynewsegypt
  • Home
  • Business
  • Politics
  • Interviews
  • Culture
  • Opinion
  • Sports
  • Lifestyle
  • Home
  • Business
  • Politics
  • Interviews
  • Culture
  • Opinion
  • Sports
  • Lifestyle
Have an existing account? Sign In
Follow US
  • Advertise
© 2023 DNE News. All Rights Reserved.
Dailynewsegypt > Blog > Business > Egypt’s LNG import ambitions thrown into disarray
Business

Egypt’s LNG import ambitions thrown into disarray

Daily News Egypt
Last updated: 2014/02/20 at 11:01 AM
By Daily News Egypt 4 Min Read
Share
SHARE

Reuters – Egypt’s hope of importing liquefied natural gas to stave off an energy crunch this summer may fall through after a Norwegian firm pulled out of a deal to install an LNG import terminal, sources with knowledge of talks between Cairo and the company said.

If it fails to secure a means of importing LNG, Egypt would have no place to turn for fuel supplies as already painful shortages are set to become more acute with the approach of summer.

The latest setback came when Hoegh LNG, which was recently awarded the contract to provide a floating terminal, rejected the commercial terms offered by state-run gas company EGAS, the sources said.

The tender process to find a company to provide the terminal began around 18 months ago, well before the army-toppled Islamist President Mohamed Morsi last July.

Hoegh LNG’s chief concern was the lack of financial guarantees to underpin project costs, the sources said.

The cash-strapped government’s financial troubles have forced Cairo to delay payment of debts to foreign oil companies.

“[Hoegh LNG] won the tender, but the conditions offered by the counterparts in terms of commercial and financial guarantees were not good enough,” one source said.

Even so, the Norwegian shipper may yet clinch the deal, because the two sides are still in talks, the sources said.

“There is a process which has to be completed. Hoegh LNG are in that process,” a Hoegh LNG spokesman said.

Egypt’s energy ministry said the process to award a terminal provider was ongoing and declined to give further details.

Terminal providers say Egypt could have a terminal in place to receive LNG within six months of a contract award.

At the latest count, around six floating import terminals, or Floating Storage and Regasification Units (FSRUs), were available globally. Hoegh LNG owns two, and US company Excelerate Energy, which was a rival bidder, has four, the sources say.

Officials in the military-backed interim government installed after Morsi’s ouster blame his administration for failing to secure a floating terminal last year.

But Egypt’s energy troubles predate Morsi. They are rooted in fuel subsidies that cost the government $15bn a year, a fifth of the state budget, and which encourage consumption.

The subsidies also drain foreign currency reserves that could be used to pay off $6bn in debts to foreign energy companies and improve payment terms to encourage investment.

It is unclear whether the government has approached any rival companies, including Excelerate, to replace Hoegh.

Oil Minister Sherif Ismail told Reuters on 9 February that the government was “very close to closing the bid for the FSRU”.

But he indicated that it might be too late for the terminal to be of use in importing badly needed gas supplies for the summer.

“It is our prime concern and intention to solve this problem for Egypt, if not for this year by 100%, then at least for the years yet to come,” he said.

Ismail said Egypt would need to import an additional $1bn worth of petroleum products to meet energy needs for the summer, on top of securing significant gas supplies.

With the latest setback, however, those additional gas supplies may be out of Egypt’s reach for now

You Might Also Like

As Egypt decides to establish tourist chambers, federation, what is in it for tourism industry?

FRA extends deadline for electing Egyptian federation for securities’ board for 3 months

New MoU signed to develop SMEs in industrial zone in East Port Said

CI Capital records revenues of EGP 1.6bn in 1Q 2023

International Conference of Institute of National Planning discusses various types of governance

TAGGED: Gas, LNG, petroleum
Share this Article
Facebook Twitter Email Print
Previous Article Bites Fil Beit: Crêpe bel ferakh we esh el ghorab – Crêpe with chicken and mushrooms
Next Article BG Group buys Nigerian LNG to replace lost Egyptian output
2 Comments

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Ad image
Ad image

Stay Connected

Facebook Like
Twitter Follow
Instagram Follow
Youtube Subscribe

Latest News

As Egypt decides to establish tourist chambers, federation, what is in it for tourism industry?
As Egypt decides to establish tourist chambers, federation, what is in it for tourism industry?
Tourism
FRA extends deadline for electing Egyptian federation for securities’ board for 3 months
FRA extends deadline for electing Egyptian federation for securities’ board for 3 months
Business
New MoU signed to develop SMEs in industrial zone in East Port Said
New MoU signed to develop SMEs in industrial zone in East Port Said
Business
CI Capital records revenues of EGP 1.6bn in 1Q 2023
CI Capital records revenues of EGP 1.6bn in 1Q 2023
Business
//
Egypt’s only independent daily newspaper in English. Discuss the country’s latest with the paper’s reporters, editors, and other readers.

Quick Link

  • Home
  • Business
  • Politics
  • Interviews
  • Culture
  • Opinion
  • Sports
  • Lifestyle

Sign Up for Our Newsletter

Subscribe to our newsletter to get our newest articles instantly!

© 2023 DNE News. All Rights Reserved.

Join Us!

Subscribe to our newsletter and never miss our latest news, podcasts etc..

Zero spam, Unsubscribe at any time.

Removed from reading list

Undo
Welcome Back!

Sign in to your account

Lost your password?