Cairo announces gas deal with Algiers

07 December 2014

Six shipments of liquefied natural gas to arrive in Egypt next year

Egypt has announced a deal with Algeria to import six shipments of liquefied natural gas (LNG) between April and September, in an effort to ease its worst energy crisis in decades.

The contract will be signed in Algeria before the end of the year, according to a statement released by Egypt’s oil ministry on 4 December. It did not give details on the size of the shipments or the price being paid for the gas.

Egypt currently has no regasification facilities to allow it to import LNG, and plans to install a floating regasification terminal offshore have seen months of delays.

In November, Cairo finalised a deal with Norway’s Hoegh LNG to install a terminal, which is due to be comissioned in March next year.

Egypt is currently struggling to meet rising demand for energy as its domestic gas production declines.

Foreign energy companies have proven reluctant to invest in the country’s assets due to the low prices paid to producers by the government and its track record of failing to pay on time.

The government currently owes a total of $4.9bn to international oil firms.

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