Supplies of LNG to Egypt
In August 2015, Rosneft and the Egyptian State Gas Company signed a general agreement on gas supplies to the Egyptian company for a period of 2 years. In 2016-2017, Rosneft supplied 700 thousand tons of LNG.
In August 2015, Rosneft Trading and the Egyptian Natural Gas Holding Company (EGAS) signed a general agreement on the supplies of LNG during the visit of Egyptian President Abdel Fattah al-Sisi to Russia. According to the head of EGAS, Khalid al-Badi, the contract provided for 24 LNG supplies over two years, starting from the last quarter of 2015.
Egypt occupies a special place in the gas strategy of Rosneft. The first batch of LNG in the history of the company was delivered to Egypt. In total, Rosneft Trading delivered three batches in 2016. It became a pass to the world LNG trading market, which usually requires confirmation of experience in organizing LNG supplies in order to work through international tenders.
Egypt occupies a special place in the gas strategy of Rosneft. The first batch of LNG in the history of the company was delivered to Egypt.
On May 6, 2016, the press service of Rosneft announced the delivery of the 1st batch of LNG to the port of Ain Sokhna, Egypt, where the floating regasification unit is located. This delivery was the first in the history of Rosneft’s operating activities. LNG was purchased on the international market under a spot contract. According to the company, the total amount of supplies in 2016 amounted to 174 thousand tons of LNG.
In February 2017, Rosneft Trading and EGAS signed a contract for the supplly of 10 LNG consignments. Then EGAS also contracted French Engie and Oman OTI. The total amount of contracts for the supply of 45 LNG consignments (138-156 thousand cubic meters each) for three suppliers amounted to $1 billion. Egypt received a grace period of 6 months to pay for supplies.
The total amount of supplies in 2017 amounted to 12 billion roubles or 600 thousand tons of LNG, which is 3.5 times more than in 2016.