EGYPT will re-export the five cargoes of natural gas that Qatar is providing to the country as a gift to GDF Suez and BG Group plants in Europe and Asia as compensation for declining exports. According to Reuters, GDF Suez will take delivery of three liquefied natural gas (LNG) cargoes in Europe, while BG Group will send two shipments to Asia. The two foreign companies work in gas exploration in Egypt and are involved in a gas swap deal with Qatar. According to the deal negotiated in May, Egypt will buy the shares of the two foreign companies in locally extracted LNG. The foreign companies will then take the LNG being imported from Qatar in compensation. The five gift cargoes are a part of a larger deal that would see Qatar supplying 18-24 cargoes to firms such as BG Group and GDF Suez over the next year or more. But the number of cargoes under discussion has declined to 13, and negotiations continue on price. While Egyptian port facilities are not equipped to import the gas, it will help to alleviate the domestic energy shortages that led to power outages and cars queuing in front of petrol stations recently. Egypt can export LNG, but it cannot import it without a floating terminal, which it has struggled to secure after cancelling a number of tenders.
