Egypt delays third LNG terminal citing lack of need

fsruEgypt will delay plans to rent a third liquefied natural gas import (LNG) terminal because the market does not need it in 2017, Petroleum Minister Tarek El Molla told local financial newspaper al-Borsa on Thursday.

El Molla did not say how long the delay would be for.

Once a net energy exporter, Egypt began importing liquefied natural gas (LNG) last year and has leased two floating and storage regasification units (FSRU) already to help avert power shortages caused by falling energy production and rising consumption.

Norway’s Hoegh delivered Egypt’s first FSRU, an import terminal that converts LNG to natural gas to feed the power grid, in April 2015 and Singapore-based Norwegian gas shipping company BW Gas supplied the second in September 2015.

A third FSRU was expected to arrive at the end of June 2017 to handle a surge in LNG demand from new power plants coming online. Molla said that a reevaluation of natural gas projects that will feed into the grid showed the local market did not need any more gas imports next year.

Egypt held a tender in July this year and firms that have expressed interest included Hoegh, BW Gas, and U.S. firm Excelerate Energy.

(Source: Reuters)

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