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Egypt Rents Floating Liquefied Gas Unit to Support Energy Security

Camel riders are seen at the foot of Khafre Pyramid in Giza, south of the Egyptian capital. (AFP)
Camel riders are seen at the foot of Khafre Pyramid in Giza, south of the Egyptian capital. (AFP)
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Egypt Rents Floating Liquefied Gas Unit to Support Energy Security

Camel riders are seen at the foot of Khafre Pyramid in Giza, south of the Egyptian capital. (AFP)
Camel riders are seen at the foot of Khafre Pyramid in Giza, south of the Egyptian capital. (AFP)

The Egyptian Ministry of Petroleum announced on Thursday that the country’s Natural Gas Holding Company (EGAS) has concluded an agreement with Norway’s Hoegh LNG to rent the Hoegh Galleon floating unit for liquefied natural gas (LNG).

In a statement, the ministry said the unit will be rented for storage and regasification “to secure additional needs for domestic consumption during the summer.”

Hoegh LNG said the unit would be leased for an interim period from June 2024 to February 2026 and deployed in Ain Sokhna on the Red Sea. The aim of the agreement was “to support energy security in Egypt”, the company said in a statement.

Egypt is expected to increase LNG imports during the summer months to meet high demand that caused a wave of power outages last summer, which shocked Egyptians who had been used to a decade of reliable power supplies by the gas producer.

Sources told Reuters that the government bought at least two LNG cargoes in April and is expected to purchase up to 20 over the spring and summer to prepare for increasing power demand.

Returning to imports would reverse the most populous Arab country’s position as a natural gas exporter in recent years, Reuters reported.

Egypt, which faces a growing demand for gas from its population of about 106 million people, is seeking to become a regional gas supplier, but has not made other major discoveries than the giant Zohr field in 2015.

Figures released by the Joint Organizations Data Initiative (JODI) showed that in 2023, total natural gas production in Egypt decreased by 11.5 percent on an annual basis to reach about 59.29 billion cubic meters, the lowest production level since 2017.

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Saudi Trade Surplus Hits 10-Month High as Imports Decline

King Abdulaziz Port in Dammam, Eastern Saudi Arabia (Asharq Al-Awsat)
King Abdulaziz Port in Dammam, Eastern Saudi Arabia (Asharq Al-Awsat)
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Saudi Trade Surplus Hits 10-Month High as Imports Decline

King Abdulaziz Port in Dammam, Eastern Saudi Arabia (Asharq Al-Awsat)
King Abdulaziz Port in Dammam, Eastern Saudi Arabia (Asharq Al-Awsat)

Saudi Arabia posted its highest trade surplus in 10 months in February, buoyed by a sharp drop in merchandise imports, a trend that supports state revenues, bolsters currency stability, and reflects strong global demand for locally produced goods.

The Kingdom recorded a trade surplus of 31 billion riyals ($8.26 billion) in February, up 44.6% from 21 billion riyals in January and higher than the 29 billion riyals recorded in the same month last year, data from the General Authority for Statistics showed.

The surge came despite a slight dip in exports, as merchandise imports fell by 5.6% month-on-month to 63 billion riyals ($16.7 billion) — the lowest level since late 2023. Meanwhile, merchandise exports stood at 94 billion riyals ($18.3 billion), down from 97 billion riyals in January.

Saudi Arabia’s non-oil exports, including re-exports, rose 14.3% year-on-year in February to 26 billion riyals ($6.9 billion), up from 23 billion riyals in the same month last year, driven by ongoing efforts to boost domestic industry and global market access.

The growth comes as the Kingdom steps up its “Made in Saudi” initiative, aimed at helping local companies expand operations, tap new customer bases, and market their products to a wider audience. The program is part of Riyadh’s broader push to diversify the economy and reduce reliance on oil.

Trade experts say the rise in exports relative to imports is supported by a mix of financial incentives, export facilitation, and expanded logistics infrastructure across air, land and sea.

China remained Saudi Arabia’s largest export destination in February, accounting for 16.2% of total exports. South Korea followed with 10.1%, and the United Arab Emirates came third with 9%.

Dr. Fawaz Alamy, an international trade expert, told Asharq Al-Awsat that the trade surplus reflects the Kingdom’s successful policies to stimulate the private sector and boost the competitiveness of national products abroad. He said recent regulatory reforms have eliminated key obstacles for exporters and helped create entities that support global expansion.

He added that government agencies are working closely with the private sector by providing consulting services, financing, and market targeting strategies to facilitate international trade.

“Saudi Arabia’s non-oil activities are now growing steadily and contributing more than 50% to GDP,” Alamy said, noting this aligns with Vision 2030 goals to build a diversified and thriving economy.

Economic analyst Ahmed Al-Shehri echoed the sentiment, saying February’s trade surplus highlights the success of government collaboration in enhancing the export environment, overcoming exporter challenges, and improving export-related knowledge and talent.

He added that authorities continue to support the private sector and create an attractive environment for local and foreign investment. “In recent years, the government has worked to understand and remove the challenges facing domestic companies to ensure they can drive economic growth,” Al-Shehri said.

He noted that the non-oil sector’s contribution to GDP is now around 50%, adding: “Government agencies are actively helping manufacturers and exporters identify global market opportunities and deliver tailored support.”