Egypt is planning to build a new liquefied natural gas (LNG) liquefaction and storage terminal in Port Said to supply fuel for the Suez Canal Authority’s (SCA) locomotives. The project was discussed in a recent meeting between Minister of Petroleum and Mineral Resources, Karim Badawi, and SCA Chairman, Osama Rabie.

The project aligns with the SCA’s strategy to transition to cleaner energy sources. Badawi stated that the Ministry of Petroleum and Mineral Resources (MoPMR) fully supports the initiative, which aims to enhance the operational efficiency of the canal’s locomotives while promoting sustainable fuel use.

Badawi also commended the SCA for its continued facilitation of liquefied petroleum gas (LPG) vessel transit through the Canal and its logistical support at Ain Sokhnaports. These efforts played a critical role in maintaining stable gas supplies to Egypt’s power stations and industrial sector during peak summer demand.

Rabie highlighted that the terminal could serve as a model for similar facilities in other Egyptian ports. He stressed the SCA’s commitment to expanding its green operations and highlighted the strategic importance of LPG vessel traffic through the Canal.

The project is expected to bolster Egypt’s position as a regional energy hub and further integrate sustainable practices into the country’s infrastructure and maritime logistics.

Egypt serves as a strategic hub for natural gas in the Eastern Mediterranean, utilizing its two major liquefaction plants at Idku and Damietta. These facilities enable the export of liquefied natural gas (LNG) from domestic fields and from regional partners. A 155,000-cubic-meter shipment of liquefied natural gas (LNG) was exported from Egypt’s Idku liquefaction plant to Italy aboard the New Nature tanker operated by Shell International. A 155,000-cubic-meter shipment of liquefied natural gas (LNG) was exported from Egypt’s Idku liquefaction plant to Italy aboard the New Nature tanker on behalf of Shell. Egypt is positioning itself as a regional energy exporter and a transit point for Eastern Mediterranean gas to Europe and global markets.