Egyptian Natural Gas Holding Company (EGAS) has signed a Letter of Intent (LoI) to carry out the feasibility of identifying a liquefied herbal fuel (LNG) refuelling center in Egypt.
The deal was signed with British oil company Shell, Egyptian shipping company Pyramid Navigation, Egyptian renewable energy company Infinity and U. S. Eagle Oil.
Under the terms of the letter of intent, the 4 corporations will cooperate on an assignment of LNG ships in Egypt.
The four corporations aim to identify a joint venture and adopt a feasibility study on the most productive way to implement the project.
In a statement, Egyptian Minister of Petroleum and Mineral Resources Tarek el-Molla said Egypt’s oil sector is taking concrete steps to cooperate with global corporations on carbon emissions.
He also said supplying ships with low-carbon fuel, such as LNG, would help reduce emissions, take advantage of Egypt’s location and the country’s role as a regional energy trading hub.
El-Molla said the proposed location of the LNG bunkering hub is strategic, as it is close to the Suez Canal and there are giant volumes of LNG in Egypt.
He also said the partnership would offer Egas the opportunity to be the leading LNG supplier for ships in Egypt and neighboring countries.
Tahir Farouqi, director of Shell Global Liquefied Natural Gas Company, the new deal deepened Shell’s long-term partnership with Egypt.
Global fuel prices have risen sharply in 2022 as European fuel-consuming countries have rushed to seek imported Russian fuel as part of the ongoing war in Ukraine.
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