Taking another step towards easing its energy demand challenges, Egypt welcomed the arrival of a second liquefied natural gas import terminal this week, opening another avenue for needed natural gas imports.
According to media reports, Cairo took in the floating LNG terminal with plans to begin operations later in October, complete with storage and regasification capacity.
The unit was sent by Singapore-based Norwegian group BW Gas, has a capacity of 600 to 700 million cubic feet per day, according to Reuters.
The arrival comes at a time when Egypt continues to struggle to meet its domestic demand, as well as draw down significant debts to international producers. Egypt has a long history of energy challenges, though they grew significantly more daunting over the last four years. With the collapse of the long-standing government of Hosni Mubarak, the country of over 80 million found itself economically isolated, which served to reduce its foreign reserves and with it, the ability to keep up payments to oil and gas importers.
At the same time, the country’s domestic production has continued to slow, a situation made worse by a series of attacks on eastbound gas pipelines to buyers in Israel and Jordan, further reducing needed energy sector revenue.
Despite such set-backs, Egypt is now flush with confidence thanks to the recent discovery of a “super giant” natural gas discovery off its Mediterranean coastline. According to a Bloomberg report on the discovery, Italy’s Eni outlined a potential “super giant” field that could potentially be home to 30 trillion cubic feet of gas, making it the biggest find in the Mediterranean.
However, even in the best case scenario, access to that gas is a long way down the road, making short-term solutions like LNG terminals all the more important.
The delivery comes after the arrival of another LNG terminal in April from Norway’s Hoegh LNG.
source: Forbes
