Monday, December 29, 2014

#Egypt and #Algeria to sign gas import agreement

Egypt will import 6 cargoes of LNG from Algeria between April and September

Dana Gas

An undated handout photo shows a Dana Gas rig in Egypt

 Egyptian petroleum minister Sherif Ismail set off for a two-day visit to Algeria on Monday to sign a Liquefied Natural Gas (LNG) import agreement with the oil rich North African country, according to a Reuters report.

The Egyptian government announced earlier this month that it will import six cargoes of LNG from Algeria between April and September 2015.

A member of the delegation accompanying the minister told Reuters, that Egypt wants to discuss pricing with Algeria as LNG prices are expected to go down amid plunging international oil prices.

Egypt signed, in November, an agreement with Norwegian Liquefied Natural Gas services firm, Hoegh LNG to rent a Floating Storage and Regasification Unit (FSRU) for five years. This allows Egypt to Import LNG, to ease its energy shortages.

Egypt has been suffering from a mounting energy crisis as domestic production of natural gas, predominantly used in power stations, was disrupted by the political turmoil of the past three years.