The state-owned Egyptian Holding Company for Natural Gas (EGAS) signed Tuesday a five-year deal with Russian company Gazprom to import a total of 35 liquefied natural gas (LNG) shipments, according to a ministry statement.
Egypt’s government is working to tackle the worst energy crisis that the country has faced over the past years; rolling power cuts in the summer have become routine since the January 25 Revolution in 2011, caused by fuel shortfalls at power plants, and increasing demand.
Minister of Petroleum Sherif Ismail witnessed the deal signing between chairman of EGAS and Gazprom’s General Manager.
“Under the deal, Egypt will receive seven LNG shipments annually for five years, and the two companies will agree when Cairo will receive the shipments in the second half of 2015,” the statement read.
Signing this deal brings the total number of LNG shipments Egypt has agreed to import from five foreign companies to 90 shipments. Forty-nine shipments are scheduled to be delivered in 2015 and 2016 in light of the state’s global tender to procure energy for running power plants
Egypt will receive 33 LNG shipments from Trafigura, seven shipments from the British Noble Clean Fuels, six from Algerian state-owned energy company Sonatrach, and nine from Swiss-based Vitol, the statement detailed.
