Second Qatar LNG Shipment Headed to Egypt
For the second time this month, Qatar has sent a tanker carrying liquefied natural gas (LNG) to Egypt, a country struggling to meet energy demands amid much deadly violence and political unrest, Reuters reported.
Qatar’s tanker reportedly left Ras Laffam terminal on August 9, one week after the first cargo was sent as part of an agreement between Mursi and his Muslim Brotherhood government backed by Doha.
According to Reuters, Doha agreed in June to supply Egypt with five shipments of an unspecified amount of LNG to help lessen the frequency of recurrent power cuts throughout the country. Egypt is said to have borrowed billions of dollars in attempts cover some of the energy shortages, but its many of its payments to oil companies and suppliers have been delayed.
With the newest delivery, it seems that Qatar will continue to honor its deal with Mursi despite mass protests and violence throughout Egypt.
Egypt’s supply shortages coupled with growing domestic needs in recent years have caused the LNG-producing nation to curb exports as it attempts to deal with shortages.
Reuters reports that Egypts failure to meet domestic gas needs will likely cause the five shipments to be signed over to foreign partners GDF Suez and BG Group (BRGXF) at Egyptian the Idku export plant, while the Qatar cargos will help meet satisfy Egyptian demand for exports and channel more gas in the domestic market.
Sources: Reuters, staff