Egypt delays LNG import terminal startup

Egypt’s LNG import terminal completion date has been pushed back to December, the country’s oil minister Sherif Ismail said.

The project that would allow Egypt to add importing facilities to already existing export facilities has been constantly delayed for two years deepening the energy shortage issues throughout the country.

Reuters reports that the deal with Höegh LNG, for the use of one of its FSRU’s for five years, had been agreed in May but sources from the Egyptian Natural Gas Holding company said in July that the terminal would not be completed before October or November. Industry sources have also said that Egypt reopened talks with Excelerate Energy back in July.

Declining domestic production has led to gas shortages and diverting of gas set for exports to the domestic market, and this has increased Egypt’s debt to foreign energy companies to $11 billion. According to Ismail, Egypt has repaid $1.2 billion so far.

LNG World News Staff, September 9, 2014; Image: BG