Egypt and Germany are engaged in discussions regarding the charter of an FSRU, led by Badawi and Yassin Mohamed of EGAS. The two countries commenced negotiations in February, focusing on technical lease details. Currently unclear is whether a final agreement has been achieved as discussions continue. The charter aims to address Egypt’s rising natural gas demand, supporting domestic energy stability.
The discussion between Egypt and Germany regarding the charter terms for a floating storage regasification unit (FSRU) was highlighted when Badawi, along with Yassin Mohamed, the managing director of EGAS, met with German government officials. The Egyptian Ministry of Petroleum and Mineral Resources disclosed these developments on Wednesday, indicating ongoing negotiations that began in February regarding the technical aspects of the FSRU lease.
Following meetings in Cairo between EGAS representatives and officials from the German Ministry of Foreign Affairs, it remains unclear whether the final charter agreement has been signed, as the discussions appear to be ongoing. Earlier this month, the Egyptian Ministry announced intentions to sub-charter the FSRU from Germany after Badawi’s discussions at CERAWeek in Houston.
Plans are in place for a visit by Egyptian specialists to Germany before the end of the month to finalize the contract details for the FSRU unit. In a related development, Deutsche ReGas announced the termination of its charter for the FSRU Energos Power at the Mukran LNG import terminal, which has implications for the contracting landscape in Germany.
The charter agreement with the German government, effective since 2023, spans a period of ten years. The FSRU, as per AIS data, was reported to be located offshore of Denmark’s Skagen recently. Egypt has transitioned from being an LNG exporter to an importer due to decreased domestic gas production and increased cooling demand stemming from heatwaves.
To meet its natural gas needs, Egypt is currently utilizing the Hoegh Galleon FSRU at the Sumed port and anticipates the arrival of another unit, Energos Eskimo, in June. A deal was signed in December 2024 with New Fortress Energy to charter the second FSRU, aimed at meeting increasing domestic demand, particularly during peak summer months, while ensuring reliable natural gas supplies for electricity generation. The Hoegh Galleon, situated at Ain Sokhna, is pivotal for Egypt’s LNG imports.
In conclusion, the negotiations between Egypt and Germany concerning the FSRU charter reflect Egypt’s urgent need to secure natural gas imports amidst declining local production. The meetings, set to result in a potential contractual agreement, aim to bolster Egypt’s energy infrastructure during high-demand periods. With an additional FSRU on the horizon and ongoing import activities, Egypt is strategically positioning itself to stabilize its energy supply.
Original Source: lngprime.com
