Egypt Locks in Gas Security Through Massive 5-Year FSRU Deal
Egypt has secured its natural gas future for the next five years through an ambitious floating storage and regasification unit (FSRU) program, Prime Minister Mostafa Madbouly announced during a high-stakes Cabinet meeting Wednesday. The strategic move comes as the country works to restore full domestic production capacity while exploration activities ramp up across the region.
The regasification units represent a crucial bridge solution as Egypt accelerates exploration and drilling operations with foreign partners. The government has successfully settled monthly dues and accumulated payments with international operators, clearing the path for renewed investment and production growth.
Egypt currently operates three regasification units at SUMED and Sonker ports in Ain Sokhna with a combined capacity of 2,250 million cubic feet per day. These units adapt dynamically to seasonal shifts and short-term demand changes, ensuring consistent supply security.
The FSRU strategy has already enabled Egypt to secure liquefied natural gas cargoes under favorable pricing and payment conditions for up to three years in advance. Meanwhile, exploration results continue to impress, with Dana Gas reporting nine billion cubic feet of gas discovered in the Begonia-2 appraisal well, and offshore drilling operations adding significant production capacity to existing fields.
Source: egyptoil-gas.com
