Egyptian government signed long-term deal to increase LNG import

The Egyptian government has signed a 10-year agreement for using a floating terminal to import liquefied natural gas (LNG). As noted by Bloomberg journalists, this indicates the North African country's long-term dependence on fuel imports.

Under an agreement between state-owned Egyptian Natural Gas Holding Co. and Hoegh Evi Ltd, the Hoegh Gandria vessel will be deployed in the port of Sumed, near Alexandria on the Mediterranean coast. In an official statement by Hoegh Evi Ltd, the launch date of the floating storage vessel is scheduled for the fourth quarter of 2026.

The energy deficit in the Middle East's most populous country more than doubled last year to $11.3 billion, according to Goldman Sachs Group Inc. The figure was $4.4 billion a year earlier, while in 2022, the country faced a surplus of $4,1 billion.

The Hoegh Gandria vessel, which delivers up to 1,000 million standard cubic feet of gas per day, will replace the Hoegh Galleon, which currently serves as Egypt's only operational LNG import terminal.