Page 7 - GLNG Week 44 2022

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Shell teaming up with

Egyptian partners to offer LNG

bunkering for Suez traffic

BUNKERING SHELL (UK) is looking to work with several project for multiple reasons.
Egyptian companies to establish an LNG bun- For one thing, the country already handles
kering hub to serve ships transiting the Suez a great deal of shipping traffic by virtue of its
Canal, according to the North African country’s advantageous geographic position as the oper-
Ministry of Petroleum Resources. ator of the Suez Canal, he explained. Demand
The ministry reported on October 30 that for LNG fuel is rising in the marine sector, and
Shell Global, a subsidiary of Shell, had signed a Egypt’s government support efforts to expand
letter of intent (LoI) with state-owned Egyptian the use of natural gas as a lower-carbon fuel, he
Natural Gas Holding Co. (EGAS) and three pri- added.
vately-owned firms – Eagle Oil & Gas, Infinity For another, he noted, the proposed joint
Solar and Pyramid Navigation – on the project. venture will be able to source LNG from both of
The partners will conduct a feasibility study and Egypt’s gas liquefaction plants. (The minister was
examine options for setting up a joint venture referring to the fact that because Shell operates
to build the LNG bunkering hub, it said in a Egyptian LNG, a 7.2mn-tonne per year (tpy)
statement. facility at Idku, while EGAS is a shareholder in
The statement did not say when the partners SEGAS LNG, the 5mn-tpy Damietta facility.)
hoped to finalise an agreement on the project As of press time, Shell had not confirmed the
nor reveal the estimated value of the deal. Nei- ministry’s announcement on the signing of the
ther did it disclose the projected timeline for the LoI. When contacted by LNG Prime, the mul-
establishment of the new bunkering hub. ti-national said it had no comment on the matter
It did comment, though, that LNG bunker- at this stage.
ing was likely to prove a good opportunity for EGAS and the other Egyptian companies
Egypt. Petroleum Resources Minister Tarek have also not spoken publicly about the LNG
El-Molla was quoted as saying in the statement bunkering project.™
that Egypt’s government was supporting the

Week 44 03•November•2022 www. NEWSBASE .com P7