Egyptian Natural Gas Holding Company (EGAS) and Hoegh LNG have signed a Letter of Intent (LoI) for the North African country to use of one of the company’s floating storage and regasification units (FSRU) for five years
Sveinung Stoehle, chief executive of Hoegh LNG, told Reuters that the firm had signed the contract, but there are still some details that need to be worked out.
Currently, Egypt can export LNG but cannot import it without a terminal. Although the LNG import terminal will be provided by the firm, it will not be in place in time to ease gas shortages this summer, company sources said.
The Norwegian company added that the FSRU is set to start operations in Q3 2014. According to the Egyptian Oil Ministry, the terminal would be moored off the Red Sea port of Ain Sokhna from 1 September 2014.
The platform had a storage capacity of 170,000 cubic metres and was undergoing final testing at Hyundai Heavy Industries complex in South Korea, the Ministry added.
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