Aiming overcome electricity production needs… Egypt prepares to import 17 LNG shipments
Egypt plans to import up to 17 new cargoes of liquefied natural gas during the fourth quarter of this year to meet the country’s growing needs for natural gas needed to power plants.
The Egyptian government is seeking to increase the amount of natural gas available in the country during the second half of this year to meet the growing demand for electricity during the summer months.
In June, the government agreed to buy 21 cargoes of liquefied natural gas for the summer months in addition to 5 spot cargoes that were released in July.
However, the launch of a new tender indicates that electricity consumption from natural gas and diesel exceeded government expectations.
The power outages have recently returned to the fore, as the authorities decided 6 months ago to implement a system of reducing electrical loads for multiple hours a day, where electricity is cut off alternately between regions, which sparked popular discontent.
The Egyptian government, in partnership with Jordan, is currently considering contracting a floating gasification unit with an international company.
The country’s daily energy consumption has exceeded 37 GW, up 12% from last year, translating a deficit of 4 GW.
The government is accelerating renewable energy projects to help close the gap and reduce energy imports, according to the Egyptian prime minister.
Besides imports, Egypt is reaching out to foreign companies working on gas extraction in the country to urge them to increase production.
In this context, the government agreed with Italy’s Eni and US Apache to increase production and pledged to pay back dues to incentivize companies to complete field development and exploration programs.
