Egypt, Elsewedy review progress on Ain Sokhna phosphate complex    US employment cost index 3.6% up in year to June 2025    Egypt welcomes Canada, Malta's decision to recognise Palestinian state    Pakistan says successfully concluded 'landmark trade deal' with US    Sterling set for sharpest monthly drop since 2022    Egypt, Brazil sign deal to boost pharmaceutical cooperation    Modon Holding posts AED 2.1bn net profit in H1 2025    Egypt's Electricity Ministry says new power cable for Giza area operational    Egypt's Al-Sisi, Italian defence minister discuss Gaza, security cooperation    Egypt's FM discusses Gaza, Nile dam with US senators    Aid airdrops intensify as famine deepens in Gaza amid mounting international criticism    Egypt exports first high-tech potato seeds to Uzbekistan after opening market    Health minister showcases AI's impact on healthcare at Huawei Cloud Summit    On anti-trafficking day, Egypt's PM calls fight a 'moral and humanitarian duty'    Egypt strengthens healthcare partnerships to enhance maternity, multiple sclerosis, and stroke care    Egypt keeps Gaza aid flowing, total tops 533,000 tons: minister    Indian Embassy to launch cultural festival in Assiut, film fest in Cairo    Egyptian aid convoy heads toward Gaza as humanitarian crisis deepens    Culture minister launches national plan to revive film industry, modernise cinematic assets    I won't trade my identity to please market: Douzi    Sisi sends letter to Nigerian president affirming strategic ties    Two militants killed in foiled plot to revive 'Hasm' operations: Interior ministry    Egypt, Somalia discuss closer environmental cooperation    Egypt's EHA, Huawei discuss enhanced digital health    Foreign, housing ministers discuss Egypt's role in African development push    Egypt reveals heritage e-training portal    Three ancient rock-cut tombs discovered in Aswan    Sisi launches new support initiative for families of war, terrorism victims    Egypt expands e-ticketing to 110 heritage sites, adds self-service kiosks at Saqqara    Egypt's Irrigation Minister urges scientific cooperation to tackle water scarcity    Palm Hills Squash Open debuts with 48 international stars, $250,000 prize pool    On Sport to broadcast Pan Arab Golf Championship for Juniors and Ladies in Egypt    Golf Festival in Cairo to mark Arab Golf Federation's 50th anniversary    Germany among EU's priciest labour markets – official data    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Egypt's LNG import ambitions thrown into disarray
Published in Daily News Egypt on 20 - 02 - 2014

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


Clic here to read the story from its source.