Egypt Expands LNG Capacity with Second Long-Term FSRU Deal

SEATTLE (Oil Monster): The Egyptian Natural Gas Holding Company (EGAS) has signed a 10-year charter agreement with global leader in marine energy infrastructure Hoegh Evi for the deployment of Hoegh Gandria as a floating storage and regasification unit (FSRU) in the fourth quarter (Q4) of 2026 to Ain Sokhna’s Sumed Port, providing up to 1,000 million standard cubic feet per day (mmscf/d) of peak liquefied natural gas (LNG) regasification capacity.

The company said on Tuesday that Hoegh Gandria’s conversion from the LNG carrier will begin immediately to ensure the timely delivery of the FSRU.

“Hoegh Evi is proud of its longstanding role as a trusted energy infrastructure partner to Egypt. We are excited to begin the conversion of Hoegh Gandria to a floating import terminal, highlighting the unique flexibility of marine infrastructure. We look forward to building on the successful long relationship we have with EGAS and supporting the growth of Egypt’s diversified energy system,” said Erik Nyheim, President and CEO of Hoegh Evi.

The FSRU Hoegh Gandria will replace the Hoegh Galleon, which was deployed to Egypt in July 2024 on an interim charter from the Australian Industrial Energy (AIE) Company and Höegh Evi. The Galleon will remain in Egypt for an additional year before deployment to the LNG terminal in Port Kembla, Australia, in 2027.

This agreement is considered the second of its kind for EGAS. The Company has previously signed a 10-year charter agreement with US-based New Fortress Energy to lease a second FSRU, Energos Eskimo, at Ain Sokhna’s Sumed port, with operations starting in the second half (H2) of 2025. The unit holds a capacity of 160,000 cubic meters of LNG and a regasification capacity of up to 750 million cubic feet per day (mmcf/d).

The agreement aligns with the government’s efforts to secure sufficient natural gas supplies for local needs and avoid the repeat of last summer’s frequent power cuts.

Furthermore, as previously reported by Egypt Oil and Gas, Minister Badawi, accompanied by the Executive Managing Director of EGAS, Yassin Mohamed, visited Germany in March to negotiate the contractual terms for renting the FSRU Energos Power to secure natural gas supplies.

 Courtesy: www.egyptoil-gas.com