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BW Gas wins Egypt Gas Terminal deal

BW Gas,  the Norwegian-Singaporean gas shipping giant has won a bid to provide Egypt with a floating Liquefied Natural Gas (LNG) vessel for five years, the Petroleum Ministry reported.

The ship will be delivered to Egypt’s shores in September, said Khaled Abdel Badee, the Chairman of the state’s Egyptian Natural Gas holding company, according to a statement provided by the ministry.

The vessel will receive imported LNG and convert it back into gas, supplying Egypt with 750 million cubic feet daily.

Egypt can export LNG, but cannot import it without a terminal to convert it back into gas state.

BW Gas’s ship will be the second floating LNG vessel rented by Egypt, as the Egyptian government boosts natural gas imports in order to meet local demand.

Abdel Badee said seven companies were invited to make offers, according to the ministry’s statement.

After analysing offers made by four companies BW Gas was picked because it had better prices, he added.

Abdel Badee said the new ship will dock at the port of Ain Sokhna, by the Red Sea. By mid-October, test-runs will be conducted and the ship’s supply will be integrated into the state’ s grid for natural gas.

Egypt has faced a recurring energy crisis for the past few years.

Egyptian authorities have often attributed the power crisis to a larger fuel crisis.

Abdel Badee said a tender launched by Egypt in July to import LNG was closed on Sunday and offers are being assessed. He added that around 45 LNG shipments will be imported.

As of March, Egypt had agreed to import to 90 shipments of LNG, provided by five foreign companies, 49 of which are going to be delivered in 2015 and 2016.

Source:  AlbaWabaBusiness