Egypt to change the LNG market by 2018 with the help of “Zukhr”

The giant deposit Zukhr will turn Egypt from the LNG importer into LNG exporter. Reuters says that this will seriously change the situation in the unstable LNG market that already faces a surplus.

Egypt became a large LNG importer only this year. In April Cairo rented a floating regasification terminal FSRU from Höegh LNG (Norway) and immediately became one of the largest world LNG consumers. In a few months the country’s position radically changed due to the discovery of Zukhr.

From that time Egypt engaged another FSRU, renting it from BW Gas (a Singapore-Norway gas company).

We felt quite comfortable hoping for the high demand for LNG in the coming 5 years, R. Tirrell, head of LP Höegh LNG Partners.  We still hope that FSRU Höegh Gallant will be able to work here for a long time but it will depend on how quickly the development of the new deposit will start.

The development of the offshore gas deposits as a rule takes a few years. However, as Egypt already has a part of the infrastructure, the process might take less time.