Singapore-based gas shipping company BW Gas has signed a five-year contract to supply a liquefied natural gas (LNG) floating import terminal to Egypt.

The deal was announced in a statement from state-owned Egyptian Natural Gas Holding Company (Egas) on 3 August.

“The terminal will arrive at the Ain Sokhna port in late September,” the statement said.

It will have a capacity of 750 million cubic feet a day, and will start pumping gas into the national grid in mid-October, according to Egas.

Oil Minister Sherif Ismail told UK news agency Reuters the deal is worth about $60m a year.

Egypt issued a tender for a second floating LNG import terminal on 3 May.

The country’s first floating LNG import terminal, supplied by Norway’s Hoegh LNG, arrived in April.

Egypt is currently suffering its worst natural gas shortage in decades, as demand increases and domestic production declines.