Second FSRU coming to Egypt thanks to deal with US firm

The state-owned Egyptian Natural Gas Holding Company (EGAS) has signed an agreement with the U.S. energy infrastructure player New Fortress Energy (NFE) to lease a floating storage and regasification unit (FSRU).

The unit will receive, store, regasify, and deliver liquefied natural gas (LNG) to the national gas grid. EGAS expects this deal to bolster Egypt’s natural gas infrastructure and contribute to the stability and sustainability of gas supplies.

This follows the deal for the country’s first FSRU, Hoegh Galleon, inked with Höegh LNG in May. The vessel was set to stay in Egypt from June 2024 to February 2026, followed by its deployment to AIE’s LNG terminal, which is under construction at Australia’s Port Kembla. 

The agreement was signed by Yasseen Mohamed, EGAS Executive Managing Director, and Christopher Giunta, Chief Financial Officer at New Fortress Energy.

The unnamed new unit is said to boast a storage capacity of 160,000 cubic meters of LNG and a regasification capacity of up to 750 million cubic feet daily. It will be stationed at the Sumed Port in Ain Sokhna, with operations expected to start in the second half of 2025. 

As stated by EGAS, the new agreement reflects the Ministry of Petroleum and Mineral Resources’ commitment to meeting the growing domestic demand for natural gas, especially during peak summer periods. It is also said to align with directives to ensure stable electricity supplies from natural gas.

New Fortress Energy operates a floating liquefied natural gas (FLNG) facility – Fast LNG – comprising three repurposed jack-up rigs offshore Altamira, Mexico. The firm has dubbed its first unit, FLNG 1, which started production in mid-July, “the fastest large-scale LNG project ever developed.” 

The energy player recently became the subject of a federal securities class action after it revealed an adjusted EBITDA well below its previous expectations, causing stock prices to drop. This led several investors to believe that material adverse facts related to the Fast LNG projects in Mexico were concealed from them.