Egypt agrees deal on gas bunkering hub

03 November 2022
The agreement has been signed with four companies including Shell

Egyptian Natural Gas Holding Company (EGAS) has signed a letter of intent (LoI) to carry out a feasibility study looking at establishing a liquefied natural gas (LNG) bunkering hub in Egypt.

The agreement was signed with the UK-headquartered oil company Shell, the Egypt-based oil shipping company Pyramid Navigation, the Egyptian renewable energy company Infinity and US-based Eagle Oil & Gas.

Under the terms set out in the LoI, the four companies will cooperate on a project that aims to supply ships with LNG in Egypt.

The four companies aim to establish a joint venture and undertake a feasibility study to determine the best way to implement the project.


In a statement, Egypt’s Minister of Petroleum and Mineral Resources Tarek el-Molla said Egypt’s oil sector is taking concrete steps to cooperate with global companies to reduce carbon emissions.

He also said that supplying ships with low-carbon fuel, such as LNG, would help reduce emissions, take advantage of Egypt’s location and strengthen the country’s role as a regional centre for energy trade.

El-Molla said that the proposed location of the LNG bunkering hub was strategic as it is close to the Suez Canal and there are large volumes of available LNG in Egypt.

He also said the partnership would provide opportunities for Egas to be the main supplier of LNG for ships in Egypt and neighbouring countries.

Tahir Farouqi, head of Shell Global Liquefied Natural Gas Company, said the new agreement deepened Shell’s long-term partnership with Egypt.

Global gas prices have increased dramatically over 2022 as European gas-consuming countries have scrambled to find alternatives to imported Russian gas amid the ongoing war in Ukraine.

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