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Egypt to Receive Australian LNG

Egypt to Receive  Australian LNGEgypt to Receive  Australian LNG

Egypt will receive its first shipment of Australian Liquefied natural Gas on Wednesday, according to a report by Reuters.

The 159,760-cubic-metre cargo aboard the Woodside Rogers was loaded at the port of Dampier, which serves as the loading point for two LNG export plants, Pluto and North West Shelf, both operated by Woodside Petroleum.

The North African nation has inked multiple LNG deals to meet its short term gas demand. Along with Noble Group and Sonatrach, Egypt has signed LNG imports deals withTrafigura, Vitol and Gazprom.

In total EGAS has signed agreements to import 90 LNG shipments, 49 of which are going to be delivered in 2015 and 2016, Petroleum Ministry said earlier this year.

The Egyptian economy is facing severe gas shortage as local demand has ballooned in recent years amid declining domestic production. For the short term, the government is trying to source LNG from various sources to cater to growing demand.

Also, the government is looking to encourage foreign energy firms to boost investment in local hydrocarbon sector.

Major discoveries in the 1990s have given natural gas increasing importance as an energy source. As of 2005, the country's reserves of natural gas are estimated at 66 trillion cubic feet, which are the third largest in Africa. Domestic consumption of natural gas has also risen as a result of thermal power plants converting from oil to natural gas. As of 2002, Egypt's production and consumption of natural gas are each estimated at 941 billion cubic feet.

 

Financialtribune.com