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Cash-strapped Egypt is allowing Anglo-Dutch major Shell to restart exports of LNG via its 7.2mn tons/year Egypt LNG (ELNG) terminal at Idku near Alexandria. This is despite the fact that Cairo is importing burgeoning quantities of LNG to meet domestic gas demand.
BG, since taken over by Shell, says ELNG exports all but ground to a halt in early 2014 with output from its offshore West Delta Deep Marine (WDDM) fields to the domestic market amid a growing gas shortage (MEES, 31 January 2014).
This left a gaping hole in ELNG’s finances. Shell and its partners remain on the hook for $200mn in annual repayments related to the LNG plant’s construction costs – repayments that were supposed to have been funded through ongoing LNG export revenue. (CONTINUED - 879 WORDS)