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EU expects Egypt to deliver high volumes of LNG

February 14, 2023 at 10:19 am

European Commissioner for Energy Kadri Simson conference after European Union (EU) Energy Ministers Meeting in Brussels, Belgium on 24 November 2022 [Dursun Aydemir/Anadolu Agency via Getty Images]

The European Union expects Egypt to maintain “relatively high volumes” of liquefied natural gas (LNG) deliveries to Europe, EU Energy Commissioner Kadri Simson said yesterday.

Speaking to Reuters on the sidelines of an energy conference in Egypt, Simson said: “Now we have to solve some of the bottleneck issues.”

“We do expect that, with the help of this MoU [framework deal signed in June last year], Egypt can keep the relatively high volumes of LNG that it delivered to Europe last year.”

The MoU was signed last June, the news wire said, with the aim of boosting exports of Israeli gas transported by pipeline to liquefaction plants on Egypt’s Mediterranean coast, before being shipped north to Europe.

Egypt has been trying to leverage its two liquefaction plants, production from its own gas fields and gas imports from Israel, to position itself as a regional energy hub.

Petroleum Minister Tarek El Molla said Egypt is expected to produce about 7.5 million tonnes of LNG this year – the same amount produced in 2022, when it shipped 80 per cent of its LNG to Europe.

El Molla said LNG plants were operating at less than full capacity, and could be expanded.

“They are there prepared for the time when we make the decision to increase their capacity to double or triple,” he said, but Simson said that increasing gas volumes depends on Israel which decides the level of its exports.

READ: Egypt imports record volume of gas from Israel