Russia's Gazprom to Supply Egypt With 35 LNG cargoes Over 5 Years

Russia's portfolio seller Gazprom has signed a contract with Egyptian Natural Gas Holding Company, or Egas, for the supply of 35 cargoes of LNG, Egypt's Ministry of Petroleum said in a statement Tuesday, March 17.

Under the agreement, Gazprom will deliver seven shipments per year over five years to Egas.

In February 2015, Egas signed contracts with Trafigura for the supply of 33 cargoes over 2015-2016, the Noble Group for seven cargoes over two years starting in April, and Vitol for nine cargoes over two years from June.

State-owned Egas also has a contract to procure six cargoes from Algeria from April through September, and was heard to be negotiating the terms of a contract with the UK's BP for the supply of an additional 21 cargoes.

These agreements are aimed at meeting growing domestic demand, while the country develops its own domestic gas resources.

In a recent interview, energy minister Sherif Ismail said Egypt should be producing enough gas to meet all its requirements by 2020.

The 170,051 cubic meter Hoegh Gallant, a floating storage and regasification unit, was heard to be en route to Qatar to pick up a commissioning cargo for Egypt, shipping sources said.

(Platts)