Cairo Yet To Clinch LNG Mega-Deal

Vital efforts on the part of the Egyptian government to finalize a 7mn tons/year LNG import deal were still ongoing on 14 May, MEES soundings indicate.

The failure so far to clinch the deal with Egyptian firm Citadel Capital for two Floating Storage and Regasification Units (FSRUs) means Cairo’s push to get gas in time to a looming seasonal summer power crunch is looking increasingly unrealistic. Widespread electricity blackouts could spell serious trouble for the government, given Egypt is already suffering from a serious economic and political unrest.

The LNG import tender, which if realized would be the world’s largest such floating project, was split into two – one tender for the FSRUs for which Citadel is in pole position, and a second for gas supply for which Shell is in talks to provide all or part of (MEES, 3 May). (CONTINUED - 335 WORDS)