State-owned Egyptian Natural Gas Holding Company (Egas) has invited local and international firms to register interest in the import of liquefied natural gas (LNG) and construction of a new gas import terminal.

Firms have been given until 22 November to submit their interest and experience.

“Priority for issuing the approvals will be given to the earliest First Delivery Date (FDD), starting from May 2013,”said Egas in its tender.

The work will include the construction of an LNG Floating Storage and Regasification Unit (FSRU) and the construction of all necessary facilities, equipment and pipelines to tie-in with Egypt’s national gas grid.

The winning company will have to enter into service agreements to build or rent a marine jetty or buoy mooring system at one of Egypt’s ports along the Mediterranean or Red Sea coasts .

The firm will be able to market and sell the imported gas locally through the national gas grid in return for a transportation fee, which is yet to be determined.

Egypt is the second-largest gas producer in Africa after Algeria, producing just over 60 billion-cubic-metres-a-year (bcm) of gas. It became a gas exporter in the mid-2000s, exporting 10.4 bcm in 2011, of which 8.6 bcm was LNG. It also supplies Jordan and Lebanon through the Arab Gas Pipeline. An unpopular deal to supply Israel since 1979 was cancelled in April this year.

However, domestic consumption has risen sharply over the last decade, reaching 49.6 bcm in 2011. Some industry sources estimate Egypt plans to import 1-1.5 billion cubic feet a day (cf/d) in an effort to meet domestic gas demand and minimise the use of liquid fuels for power generation.

If Egypt’s economy recovers, growth in domestic gas demand is likely to outpace production. The recently appointed Petroleum Minister, Osama Kamal, visited gas-rich Qatar in September to negotiate a possible LNG import deal to address the problem.