Shell to supply Egypt with 1 mil mt/year LNG starting 2015: executive

Royal Dutch Shell will supply Egypt with 1 million mt/year of LNG, starting this year, a senior company executive said Wednesday.

Speaking at the Gas Arabia Summit in Dubai, Shell’s Middle East and North Africa region vice president, Mounir Bouaziz, said the agreement was on trend with the growing use of LNG to enable countries in the oil-rich region to meet their domestic energy needs.

“LNG is becoming the solution of choice,” he said.

The regional LNG market was evolving rapidly due to flexible contract terms and because floating LNG receiving technology made possible the comparatively rapid “plug in” of gas supplies where needed, and in situations involving unforeseen changes in demand, Bouaziz elaborated.

Egypt, for example, was formerly a net natural gas exporter, supplying gas to international buyers both by pipeline and through two LNG export terminals. One of those is currently mothballed as the country has been facing a domestic energy crisis following its 2011 revolution.