Mobile  |  About us  |  Photos  |  Videos  |  Subscriptions  |  RSS Feeds  |  Today's Paper  |  Classifieds  |  Contact Us
The Daily Star
THURSDAY, 24 APR 2014
09:51 PM Beirut time
Weather    
Beirut
27 °C
Blom Index
BLOM
1,214.01down
Middle East
Follow this story Print RSS Feed ePaper share this
Egypt set to receive first LNG cargo before summer
Bloomberg
File - An Egyptian woman carries a child while as she walks past vehicles jamming a gas station that ran out of fuel supplies, on the outskirts of Cairo, Egypt, Monday, March 11, 2013. (AP Photo/Nasser Nasser)
File - An Egyptian woman carries a child while as she walks past vehicles jamming a gas station that ran out of fuel supplies, on the outskirts of Cairo, Egypt, Monday, March 11, 2013. (AP Photo/Nasser Nasser)
A+ A-

CAIRO: Egypt, the Arab world’s most populous nation, is poised to get its first cargo of imported liquefied natural gas before summer to help meet rising demand as local production slumps, Oil Minister Sherif Ismail said.

State-run Egyptian Natural Gas Holding Co. is in the “final stage” of reviewing three offers for rental of a regasification unit that would permit LNG imports, he said Tuesday in an interview in Cairo. The government aims “to secure a reasonable number of cargoes” this year, Ismail said, without giving further details.

“We are also looking at scheduling LNG imports for 2015 and 2016 for a period between three and five years because we believe that Egypt has big proven and potential natural-gas reserves,” the minister said. “So we will be only needing that imported gas until we bridge the gap between production and consumption.”

Local energy exploration and production slowed in the three years since an uprising toppled Hosni Mubarak from the presidency. Debts to foreign oil companies increased to $4.8 billion by the end of 2013, according to Ismail.

Egypt is producing 5.1 billion cubic feet of natural gas daily, the minister said. That compares with 6.4 billion cubic feet in 2010. Output will expand to 5.8 billion cubic feet a day with additions from new and existing fields, he said.

“We are focusing on all the fields and wells that we could put on stream this year and expedite production from others that are already producing,” Ismail added.

The government is considering importing Iraqi natural gas through a pipeline used by Egypt to deliver the fuel to Jordan, he said. It’s also in talks with Reading, England-based BG Group PLC over gas supplies after the company declared force majeure on its Egyptian LNG exports, according to the minister.

Force majeure is a legal clause freeing companies from contract terms because of circumstances beyond their control. BG, which gets about 18 percent of its production from Egypt, made the declaration on Jan. 27 after gas was diverted to the domestic market from export terminals.

Costs for fuel subsidies are set to increase to 140 billion Egyptian pounds ($20 billion) in the fiscal year through June from 128 billion pounds in the prior period, Ismail said. Egypt will receive $2 billion from the United Arab Emirates in oil-product aid in the three months to March, the minister said.

Egypt has yet to announce the winner of a tender to import LNG for the power industry that closed on March 24, 2013. The delay stems from elevated prices that resulted from a supply shortage on the global market, Ismail said.

 
A version of this article appeared in the print edition of The Daily Star on February 19, 2014, on page 5.
Home Middle East
 
     
 
Egypt
Advertisement
Comments  

Your feedback is important to us!

We invite all our readers to share with us their views and comments about this article.

Disclaimer: Comments submitted by third parties on this site are the sole responsibility of the individual(s) whose content is submitted. The Daily Star accepts no responsibility for the content of comment(s), including, without limitation, any error, omission or inaccuracy therein. Please note that your email address will NOT appear on the site.

comments powered by Disqus
Story Summary
Egypt, the Arab world's most populous nation, is poised to get its first cargo of imported liquefied natural gas before summer to help meet rising demand as local production slumps, Oil Minister Sherif Ismail said.

Debts to foreign oil companies increased to $4.8 billion by the end of 2013, according to Ismail.

Egypt is producing 5.1 billion cubic feet of natural gas daily, the minister said.

BG, which gets about 18 percent of its production from Egypt, made the declaration on Jan. 27 after gas was diverted to the domestic market from export terminals.

Costs for fuel subsidies are set to increase to 140 billion Egyptian pounds ($20 billion) in the fiscal year through June from 128 billion pounds in the prior period, Ismail said.
Related Articles
Egypt to double natural gas prices for homes and businesses
 
 
Israeli gas could improve ties with neighbors
Entities
Advertisement


Baabda 2014
Advertisement
Follow us on Facebook Follow us on Twitter Follow us on Linked In Follow us on Google+ Subscribe to our Live Feed
Multimedia
Images  
Pictures of the day
A selection of images from around the world- Thursday April 24, 2014
View all view all
Advertisement
Rami G. Khouri
Rami G. Khouri
Israel shows Zionism’s true colors
Michael Young
Michael Young
For Christians, blessed are the dividers
David Ignatius
David Ignatius
An Iran deal is close, but we’re not there yet
View all view all
Advertisement
cartoon
 
Click to View Articles
 
 
News
Business
Opinion
Sports
Culture
Technology
Entertainment
Privacy Policy | Anti-Spamming Policy | Disclaimer | Copyright Notice
© 2014 The Daily Star - All Rights Reserved - Designed and Developed By IDS