Egypt is seeking to implement a new strategic project to boost liquefied natural gas (LNG) imports by establishing a modernized floating terminal at the Sumed Port in Ain Sokhna.
This will contribute to stabilizing supplies during peak consumption periods, as part of its ongoing efforts to secure its energy needs.
The project falls within the state’s plan to address seasonal challenges associated with increased demand for electricity. It relies on converting a natural gas carrier into a floating storage and regasification unit (FSRU), with a capacity of up to one billion cubic feet per day.
The project is being implemented in cooperation between the Egyptian Natural Gas Holding Company (EGAS) and Hoegh Evi energy, a marine solutions specialist.
A government source said that Egypt is proceeding steadily in implementing its strategies to enhance energy security and meet the needs of the local market, in light of the continued rise in demand for natural gas, especially during the summer months.
The source indicated that the agreement concluded by EGAS with Hoegh Evi energy to establish an FSRU represents a pivotal step toward diversifying supply sources and enhancing the flexibility of the national energy system.
He explained that the project includes converting the gas carrier Hoegh Gandria into a floating unit with a gasification capacity of one billion cubic feet per day, which will contribute to bridging the gap between domestic production and consumption, especially during periods of high loads.
Egypt plans to import large numbers of LNG
The source also added that Egypt plans to import between 155 and 160 shipments of LNG this year, as part of a comprehensive strategy aimed at avoiding power outages or resorting to load shedding, as has occurred in some previous years.
The LNG shipments also come as part of efforts to bridge the gap between domestic production and demand and ensure sustainable electricity supply during the summer months, which witness increased pressure on the national grid.
The Sumed Port in Ain Sokhna is scheduled to receive the new unit once it is completed. It will replace the Hoegh Galleon, which is currently operating as a temporary station and is expected to depart Egypt by 2027.
The source emphasized that the petroleum sector is working according to an integrated vision that includes importing gas from multiple sources and providing a modern and flexible infrastructure to support the transformation into a regional energy hub, within the framework of regional connectivity and trade projects.
Technical work to convert the tanker into a floating terminal is expected to be completed by the end of 2026, following the delivery of the gasification unit in the middle of the same year.
The new unit will be installed to replace the temporary vessel deployed last year.
The international company Seatrium is developing the tanker as part of the project, while Wärtsilä Gas Solutions is supplying the new terminal with the latest regasification systems, as part of an extended partnership with the company that owns the unit.
A government source confirmed that the project reflects a clear direction toward supporting the infrastructure for gas imports and enhancing the flexibility of the supply system, in parallel with the expansion of regional interconnection projects, as part of Egypt’s strategy to transform itself into a regional gas trading hub within the Eastern Mediterranean.
