The Egyptian Natural Gas Holding Company (EGAS) has signed a 10-year charter agreement with Höegh Evi for the deployment of Hoegh Gandria as a floating storage and regasification unit (FSRU) in the fourth quarter (Q4) of 2026 to Ain Sokhna’s Sumed Port. The FSRU will provide up to 1,000 million standard cubic feet per day (mmscf/d) of peak liquefied natural gas (LNG) regasification capacity.

Höegh Evi, a global leader in marine energy infrastructure, said on Tuesday that Hoegh Gandria’s conversion from the LNG carrier will begin immediately to ensure the timely delivery of the FSRU.

“Höegh Evi is proud of its longstanding role as a trusted energy infrastructure partner to Egypt. We are excited to begin the conversion of Hoegh Gandria to a floating import terminal, highlighting the unique flexibility of marine infrastructure. We look forward to building on the successful long relationship we have with EGAS and supporting the growth of Egypt’s diversified energy system,” said Erik Nyheim, President and CEO of Höegh Evi.

The Hoegh Gandria FSRU will replace the Hoegh Galleon, which was deployed to Egypt in July 2024 on an interim charter from the Australian Industrial Energy (AIE) Company and Höegh Evi. The Galleon will remain in Egypt for an additional year before deployment to the LNG terminal in Port Kembla, Australia, in 2027.

In December 2024, EGAS signed a 10-year charter agreement with US-based New Fortress Energy to lease a second FSRU, Energos Eskimo, at Ain Sokhna’s Sumed port, with operations starting in the second half (H2) of 2025. The unit holds a capacity of 160,000 cubic meters of LNG and a regasification capacity of up to 750 million cubic feet per day (mmcf/d).

To meet the growing demand on energy especially during the summer months, Egypt has conducted talks with some other countries such as Germany, Turkey and Cyprus for leasing a handful of FSRU to secure Egypt’s need of natural gas.

EGAS is continuing its LNG contracts and regasification in Egypt to bridge the gap between production and consumption, estimated at more than 1.5 billion cubic feet per day on average.

Gas consumption forecasts for the second half of 2025 range between 6.3-6.4 billion cubic feet per day (bcf/d) across various consumer sectors, according to Egypt Independent.

In the meantime, the government is working to accelerate the natural gas productiton through new explorations activities and development projects in the Red Sea and the Mediterranean to maximize domestic production.