Skip to main content

BP plans to invest US$1.5bn in Egyptian gas production in 2014

BP is considering investing US$1.5bn in 2014 to increase its Egyptian gas production. Egypt is currently hit by an energy crisis following its revolution in 2011 and the country estimates that US$2.5bn will be necessary to cover gas imports until the end of 2014, as domestic production is declining and insufficient to meet the needs of the power sector.

Moreover, Egyptian Natural Gas Holding Company (EGAS) has signed a Letter of Intent (LOI) with Höegh LNG for a for a 5 year FSRU contract, whereby EGAS would charter and use a Floating Storage and Regasification Unit (FSRU), currently under construction at Hyundai Heavy Industries, as an LNG import terminal in the port of Ain Sokhna, located on the Red Sea's Gulf of Suez. The FSRU would be moored at a jetty which has been finalized as part of EGAS scope, with topsides to be supplied by HLNG. This project that will give EGAS the fast-track infrastructure to import LNG into Egypt. The FSRU is expected to be delivered in March 2015.