Egypt and Germany are negotiating terms for a charer agreement of an FSRU, with technical discussions ongoing since February. A delegation from Egypt is planned to visit Germany to finalize these terms. Concurrently, Egypt seeks to enhance its LNG import capacity to meet rising domestic demand.
Egypt’s discussions with Germany regarding the charter terms for a Floating Storage and Regasification Unit (FSRU) were highlighted during a meeting between Badawi, accompanied by Yassin Mohamed, managing director of EGAS, and German officials. The Egyptian Ministry of Petroleum and Mineral Resources announced that technical discussions about the lease had begun in late February, prior to this meeting in Houston during CERAWeek.
While negotiations are ongoing, it remains unclear whether a final charter agreement has been signed. Earlier this month, Egypt announced plans to sub-charter the FSRU from Germany. To expedite the process, a delegation of Egyptian specialists is scheduled to visit Germany by the end of this month to finalize the charter terms.
Amidst this dialogue, Deutsche ReGas announced the termination of its charter contract for the FSRU Energos Power, affecting one of the two FSRUs at the Mukran LNG import terminal. The charter agreement with Germany, starting in 2023, spans a duration of ten years.
Following a shift from LNG exporter to importer due to decreasing domestic gas production and increased demand for cooling, Egypt currently operates the Hoegh Galleon FSRU in Ain Sokhna and anticipates the arrival of the Energos Eskimo FSRU in June. In December 2024, EGAS formalized a charter agreement with New Fortress Energy for this second FSRU to address domestic gas demand during peak periods while ensuring stable electricity supplies.
The discussions between Egypt and Germany regarding the FSRU charter are crucial for Egypt’s energy strategy, particularly as the country transitions from gas exporter to importer. With ongoing negotiations and planned visits to finalize agreements, Egypt aims to enhance its natural gas supply amid rising domestic demand. The addition of the Energos Eskimo FSRU will further bolster Egypt’s capacity to meet its energy needs.
Original Source: lngprime.com
