One of Egypt’s two Floating Storage Regasification Units (FSRUs) will leave the country before the end of the week following an agreement with Norwegian supplier Hoegh LNG, Minister of Petroleum Tarek El Molla told Reuters.
The other FSRU will remain as a part of the ministry’s strategy to secure energy supplies for the country, El Molla explained.
The minister’s comments come a day after Hoegh LNG announced that an agreement had been reached with the Egypt Natural Gas Holding Company (EGAS) to amend the terms of the contract. The Norwegian company said that EGAS had agreed to end its charter early and pay the difference between the old contract and a new contract to be signed with a third party.
The statements represent the first official comment on the situation since an unnamed EGAS source revealed last month that Egypt was looking to offload one of the units.
The minister previously announced that Egypt would halt imports of liquefied natural gas (LNG) after receiving a final shipment in late September.
The minister told Amr Adib on El Hekaya that the move will save the government $1.5 billion.