The Ministry of Petroleum will stop importing liquefied natural gas (LNG) and will dispense with one of the Floating Storage Regasification Units (FSRUs) the Höegh Gallant, by the middle of this month, which in return informed Daily News Egypt of the decision. It came after Eni announced that its Zohr gas field will start adding around 2bn cubic feet per day to Egypt’s production, compared to the current 1.750bn.
A source in the Egyptian Natural Gas Holding Company (EGAS) told DNE that the ministry chose to dispense with the Höegh Gallant FRSU because its lease contract was about to end anyway, adding that Egypt already informed the Norwegian owner of the unit.
In November 2014, the EGAS signed a five-year contract with the Norwegian company over leasing the Höegh Gallant to supply Egypt with LNG at a capacity of 500m cubic feet per day. The Höegh Gallant arrived in Egypt by April 2015.
The source pointed out that Egypt’s production of natural gas will rise to about 6.75bn cubic feet per day by mid-September, compared to 6bn cubic feet per day presently.
He said that Egypt’s second FSRU will be used as an alternative in exporting LNG, as a bid to transfer Egypt into a global energy hub.
Egypt’s second FRSU is BW Singapore, delivered in September 2015 with a peak regasification capacity of 0.75bn cubic feet per day.