A Review of the Nigerian Energy Industry

Egypt to purchase 750,000 M3 LNG from Algeria

Energy Minister Youcef Yousfi and Egyptian Minister of Petroleum and Mineral Resources, Sherif Ismail.
Energy Minister Youcef Yousfi and Egyptian Minister of Petroleum and Mineral Resources, Sherif Ismail.

02 January 2015, Algiers — Algeria and Egypt have signed an agreement on supply of Egypt in 2015 with 750,000 m3 LNG in six shipments.

The agreement was signed by officials of Sonatrach and Egyptian Gas Holding (Egas) in the presence of Energy Minister Youcef Yousfi and Egyptian Minister of Petroleum and Mineral Resources, Sherif Ismail on working visit to Algeria.

The six shipments (125,000 cubic meters each) are set to consolidate the coverage of Egypt’s domestic demand estimated between 45 and 50 cargoes, according to Ismail in a statement to the press on the sidelines of the signing ceremony.

In the third week of January 2015, both parties will begin new negotiations on Algeria’s contribution to coverage of the Egyptian gas demand between 2016 and 2020. Negotiations will start in Cairo and will be completed by February in Algiers, said Ismail.

The Egyptian official stressed that his country “prefers to deal with Algeria in the field of natural gas supply because it is among the largest exporters in the world.”

The negotiations scheduled for next month as part of the call for tenders launched by the Egyptian government for the supply with gas between 2016 and 2020.

For his part, Yousfi said that Algeria’s shipments are “low compared to the capacity of Sonatrach,” adding that the upcoming negotiations will allow the Algerian group to raise its supplies to Egypt.
*Algerie Presse Service

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