Egypt Tries Harder to Stop Energy Firm Exodus
Egypt is enhancing exploration terms and striving to repay nearly $5 billion it owes to foreign oil and gas producers as it struggles to prevent them fleeing to more promising prospects elsewhere in Africa. Cairo needs them to expand exploration and bring new finds to production if it is to keep the lights on and avoid more civil unrest. But investors are hesitant - Egypt pays them barely enough to cover investment costs. The costing issue has been compounded since the 2011 overthrow of Hosni Mubarak by Egypt's inability to pay foreign firms for existing output and its decision to divert for domestic use the share of gas they normally get to export. The crisis has left BG Group, a major investor which relies on Egypt for almost a fifth of its output, unable to meet export commitments.
Stuck at Sea, BP's LNG Shipment Highlights Egypt's Payment Struggle
BP's diversion of a tanker of liquefied natural gas (LNG) away from Egypt due to payment issues is the first sign that the country's currency crisis could be jeopardising its energy supplies, traders said. Earlier this month the tanker British Sapphire was diverted to Brazil rather than discharging in Egypt, with the delivery of the LNG cargo for Egypt delayed up until October, traders said. BP declined to comment. Egypt's state-owned EGAS was not available to comment. Egypt has been struggling to pay for U.S. dollar-priced oil products and LNG due to an acute foreign currency crisis, worsened by the Russian airliner disaster in October, which hit tourism revenue.
Egypt LNG Market to Reach 4.5 MMT by 2025
LNG market in Egypt is projected to surpass 4.5 MMT by 2025, due to rising demand from power and industrial sectors in the country, says TechSci Research report. Production of dry natural gas in Egypt declined at a CAGR of 7.17% during 2011-2015. Thus, imports of LNG in the country increased during 2011-2015, and this trend is further anticipated to continue during the forecast period as well. Ministry of Electricity announced capacity addition of 2.25 GW in August 2016, with an investment of USD2.2 billion.
EGAS: BP LNG Cargo Postponed, Denies Payment Trouble
Egypt's state-owned EGAS said on Friday it had postponed a liquefied natural gas (LNG) delivery from BP last month until later this year, rejecting suggestions there were any payment difficulties. LNG tanker British Sapphire was diverted to Brazil rather than discharging in Egypt. Traders said the delay was related to payment problems. "This is completely untrue," EGAS Chairman Khaled Abdel Badie told Reuters, adding that deliveries had been postponed until Egypt's peak energy consumption period in August. Egypt became a major market for LNG shippers after the launch of two floating import terminals last year. Badie said Egypt is looking to rent a third floating storage and regasification unit (FSRU) in the first quarter on 2016.
Egypt: Suez Canal Zone to Make Up 30-35% of Economy
Egypt expects a planned economic zone near the Suez Canal to eventually make up about a third of Egypt's economy, the country's investment minister said on Thursday. Egypt plans to build an international industrial and logistics hub near the canal to attract foreign investment, alongside a separate scheme in which the army is digging a second canal to facilitate two-way traffic of larger ships. Investment Minister Ashraf Salman said the planned hub would be the centrepiece of a key economic conference planned for the end of next week, which Egypt hopes will draw investors back after four years of economic and political turmoil. "The main project that we'll show in the conference is the development of the Suez Canal…
DP World Moves Ahead with Suez Canal Industrial Zone
Dubai-based ports operator DP World has inked an agreement with the Suez Canal Authority and the Suez Canal Economic Zone (SCZone) to launch the first phase of an integrated industrial and residential zone in Sokhna. The framework agreement, which establishes a clear timetable of actions required to execute the first phase of the project spanning 30 square kilometres, was signed by Sultan Ahmed Bin Sulayem, Group Chairman and CEO of DP World and Admiral Mohab Mamish, Chairman of the Suez Canal Authority and the Suez Canal Economic Zone (SCZone).
DP World, Egypt on Expansion of Sokhna Port
DP World and Egypt's General Authority for Investment and Free Zones (GAFI) have is planning to increase the capacity of Egypt’s Sokhna port located south of Suez Canal, off the Red Sea coast, Egypt’s official State Information Service reported. DP World’s chief executive Sultan Ahmed bin Sulayem and GAFI CEO Mohamed Khodair have discussed the next phase of development in Ain Sokhna. The development will increase the capacity of Sokhna port, which sits south of the Suez Canal on the Red Sea on a maritime trade route from Asia to the Middle East and beyond.
China's Cosco Shipping to Build Logistics Park in Egypt
Cosco Shipping, one of the largest shipbuilders in China has signed an agreement with TEDA Corporation of Egypt to build a 130,000 square meters logistics zone in the Suez Canal Economic Zone. Set in Ain Sokhna, the park aims to create 300 new jobs in Egypt while forwarding the Chinese government's Bely and Road Initiative which aims to make China a major logistics provider internationally. The industrial park will include a textiles compound, a company manufacturing motorbikes and a large center for logistics. The first phase of construction of the TEDA-Suez zone has already been completed and the General Authority of the Suez Canal Economic Zone has signed a contract worth $60 million with China Jushi, a Chinese fiberglass manufacturer.
Egypt, Other Countries Interested in French Mistral Warships
About 10 countries, including Egypt, are interested in buying two French helicopter carriers whose planned sale to Russia has been cancelled due to the Ukraine crisis, a source familiar with the situation said. A second source, a French diplomatic source, said that other countries interested include Brazil, Singapore, Saudi Arabia and Canada, which could be the most suitable candidate for the ships because they were designed for cold waters. France, whose navy already operates three of the Mistral helicopter carrier warships, has no use for the two ships and will have to pay Russia nearly 1.2 billion euros ($1.3 billion) for cancelling the contract. The first source also said that Egypt is negotiating the possible exercise of its option to buy two Gowind corvettes.
RWE Dea Starts Gas Production in Egypt
RWE Dea achieved first production from the Central Treatment Plant (CTP) of the Disouq Development Project in Egypt. Production commenced at an initial rate of 45 million standard cubic feet gas per day. Total production of 150 million standard cubic feet gas per day from the Disouq project has been achieved already. RWE Dea’s oil and gas production in Egypt will be boosted by 50 percent. Further increase in production is expected in 2015. Production from the CTP commenced at an initial rate of 45 million standard cubic feet gas per day.
Dana Gas Egypt Production Reaches 200 Million SCFD
Dana Gas, one of Middle East's leading regional private sector natural gas Company, announces that it has achieved gas production level in Egypt of 200 million standard cubic feet per day (equivalent of 41,500 boepd, including over 8,000 barrels per day of associated liquids), the highest level for the company in the country in 2 years. This represents a growth of 29% over the 2012 average. The Company’s core operations in the Nile Delta and its Egyptian Bahrain Gas Derivatives…
Suez Canal July Revenue at $482 mln
Revenue from Egypt's Suez Canal rose by 8.6 percent in July to $482.2 million from $443.9 million in June, Egypt's state information portal said on Monday. The waterway, the fastest shipping route between Europe and Asia, is one of Egypt's main sources of foreign currency. Reporting by Asma Alsharif
EGAS: Egypt to tender for 10 LNG Cargoes
Egypt will tender next week to import 10 cargoes of liquefied natural gas (LNG) for delivery in July and August, an official from the state gas company, EGAS, said on Thursday. The official said Egypt would consider importing a further 10 cargoes of LNG, either through direct contracts or through a further international tender, once next week's tender is complete. Egypt relies to a large extent on LNG to generate electricity for its 90 million people. Reporting by Ehab Farouk
El Paso Global LNG Signs MOU With EGAS
El Paso Global LNG, a subsidiary of El Paso Corporation has signed a Memorandum of Understanding (MOU) to work with the Egyptian Natural Gas Holding Company (EGAS) and the Eqyptian General Petroleum Corporation (EGPC) to investigate opportunities for El Paso to invest in the natural gas sector in Egypt. The MOU will allow the parties to cooperate in the exploration, production, gathering, transportation, and processing of natural gas and the possible development of a liquefied natural gas (LNG) liquefaction plant in Egypt. The parties will begin various studies into Egypt's natural gas sector immediately.
Ecke is GM of DEA Egypt
The new General Manager for Egypt is Dr Hans-Hermann Ecke, who is responsible for the business of the Egyptian subsidiary of DEA Deutsche Erdoel AG based in Cairo since the beginning of March. “I am looking forward to the upcoming tasks in Egypt, where DEA has already been part of the oil and gas industry for more than 40 years,” says Dr Hans-Hermann Ecke. “With our Disouq natural gas project, we have recently been able to more than double our oil and gas production in Egypt. Dr Hans-Hermann Ecke has a PHD in geology.
IFC Plans $2 bln Investment in Egyptian Infrastructure, Power
The World Bank's development arm plans to invest between $1.2 billion and $2 billion in Egypt over the next four years, including around the Suez Canal, its regional director told Reuters. The International Finance Corporation is looking at ports and logistics projects, Mouayed Makhlouf, the IFC's director of Middle East and North Africa, said in an interview. The government is building a second waterway to accelerate trade flows through the canal, already one of Egypt's major sources of foreign currency. Besides infrastructure and energy projects, IFC is working with United Arab Emirates' renewable energy company Masdar and Saudi Arabia-based power and water project developer ACWA Power…
EGAS Tenders for as many as 48 LNG Cargoes
Egypt's state-owned gas company EGAS has tendered to buy at least 48 cargoes of liquefied natural gas (LNG) for delivery in 2015/16, three traders said. A senior official at EGAS confirmed that there was a tender for multiple LNG cargoes during Egypt's 2015/16 financial year, which runs from July 2015 to June 2016, but declined to say how many cargoes. The official told Reuters that the result of the tender was due by the end of this month and that seven companies had bid, adding that the contract would be split among multiple companies. Egypt finalised a long-delayed deal last month with Norway's Hoegh LNG for a floating storage and regasification unit that will allow the country to begin importing LNG.
Egypt Migrant Departures Stir New Concern in Europe
The European Union fears Mediterranean migrant smuggling gangs are reviving a route from Egypt, officials told Reuters, putting thousands of people to sea in recents months as they face problems in Libya and Turkey. "It's an increasing issue," an EU official said of increased activity after a quiet year among smugglers around Alexandria that has raised particular concerns in Europe about Islamist militants from Sinai using the route to reach Greece or Italy. Departures from Egypt were a tiny part of the million people who arrived in Europe by sea last year…
Egypt's Suez Canal Receipts Drop
Egypt's Suez Canal receipts slipped to $144.4 million in February from $160.8 million in January but up from $139.1 million in February 1999, the Cabinet Information and Decision Support Center said. The canal is a main source of hard currency for Egypt, along with remittances from Egyptians working abroad, tourism and oil.
Egypt to Buy French Warships Initially Built for Russia
France has agreed to sell two Mistral helicopter carriers to Egypt for 950 million euros ($1.06 billion) after their sale to Russia was canceled in August, French officials said on Wednesday. Cairo has sought to boost its military power in the face of a two-year insurgency based across the Suez Canal in the Sinai peninsula and fears the conflict in neighbouring Libya could spill over. Egypt's allies are also keen to burnish its image in a region beset by turmoil. "We unwound the contract we had with Russia, on good terms, respectful of Russia and not suffering any penalty for France," Hollande told reporters on his arrival at an EU summit in Brussels.
Dana Gas Receives $53m from Egypt
Dana Gas received from the Egyptian Government authorities $53m from the current total outstanding receivables of $330m. Payment of $42 million has been received in US dollars and the balance in equivalent Egyptian pounds. Including this tranche, during 2013, Dana Gas has received a total of $130m from the Egyptian Government authorities. The Egyptian Government has committed to work with the company on a plan to repay the remainder of the outstanding receivables over an agreed time frame.
Panalpina Acquires Egyptian Agent Afifi
Switzerland-based supply chain solutions provider Panalpina is to acquire its Egyptian agent Afifi, a family-owned company specializing in freight forwarding, customs clearance and logistics. The move is an important step in Panalpina’s continued strategic expansion in growth economies, in particular in the Middle East and Africa, the company said. Afifi has been Panalpina’s agent in Egypt for the last 20 years. “Egypt has a lot of potential for us,” said Peter Triebel, Panalpina’s regional CEO for the Middle East, Africa and CIS.
Egypt: Wheat to Take Less Time to Offload
Egypt's supply minister said on Wednesday a plan was being studied to cut the offloading period for wheat cargoes in ports from the current 12 days to five or six days in an effort to save on fees paid in foreign currency. The plan includes efforts to decrease the time it takes for paperwork to be processed and upgrade offloading equipment, Khaled Hanafi said in a statement. A slump in tourism and investment since a popular uprising ended the rule of Hosni Mubarak in 2011 has limited supplies of hard currency in Egypt, the world's largest importer of wheat. Difficulty in repatriating profits from business activity in Egypt is one of the main obstacles cited by investors since 2011. To restore foreign exchange liquidity in the long run, Egypt will need sustained economic growth.