Egypt is considering adding a new Floating Storage Regasification Unit (FSRU) to its port facilities at Ain Sokhna to increase import capacity, according to a petroleum ministry statement.
The ministry is also considering adjusting Egypt's two export liquidation units in Idku and Damietta to import gas instead.
A study is underway to add another floating unit for storage and gasification in Ain Sokhna, with the possibility of adjusting two export liquidation units in Idku and Damietta to import gas instead, the Ministry said.
In Egypt, the storage and gasification unit is equipped to receive and store imported LNG, which could alleviate the country's current power outage crisis.
Last May, the Egyptian Natural Gas Holding Company (EGAS) concluded an agreement with Norway’s Hoegh LNG to rent the Hoegh Galleon floating unit for liquefied natural gas (LNG) for storage and regasification “to secure additional needs for domestic consumption during the summer.”
The gasification process is the conversion of LNG into its gaseous form for direct consumption. Egypt has two LNG plants, Damietta and Idku, for converting gas into liquid so it can be exported by ship, and a gas export pipeline.
But the government has decided to keep gas for the domestic market.
In the past two months, Egypt began buying LNG, a rare move by the fuel exporter to avoid shortages this summer.
On Sunday, the Ministry said in a statement that Egypt is planning to drill 110 exploratory wells for gas and oil, with a total investment of $1.2 billion during the current fiscal year 2024/2025.
Egyptian Petroleum and Mineral Resources Minister Karim Badawi said that Egypt will have 586 exploratory wells for gas and oil drilled, with a total investment of $7.2 billion by 2030.
In a meeting with a parliamentary committee reviewing the new government's program, Badawi said, “Our top priority is to continue coordination and cooperation with the Ministry of Electricity and Renewable Energy to provide the necessary fuel supplies to operate power stations.”
He noted that Egypt coordinates with foreign partners to schedule and pay off overdue payments to encourage them to inject more investments to increase oil and gas production as quickly as possible.
In addition, Badawi highlighted that the ministry focuses on creating incentive mechanisms to boost production programs and expedite exploration programs to benefit all parties.
“We will also continue to attract foreign investment in the short term, by adopting a new investment concept, which will contribute to the full utilization of the petroleum sector from refineries, petrochemicals and mineral resources, along with maximizing the use of the modern capabilities of digital transformation and AI technologies,” he added.
