A floating regasification unit will be heading our way next month: Norway’s Höegh LNG will send a floating storage and regasification unit to Ain Sokhna next month, as per an agreement it signed with state-owned Egyptian Natural Gas Holding Company and Australian Industrial Energy (AIE), according to statements from the Oil Ministry and HöeghLNG. The unit is expected to cost the government USD 90 mn a year, CNN Business Arabic reported, citing an unnamed government official.

The regasification unit will remain in Egypt for around 19-20 months through February 2026, the Norwegian company’s statement read. After that, it’ll head to an Australian LNG terminal owned by AIE. The regasification unit will reduce the country’s reliance on Jordan’s terminal in Aqaba, which Egypt was given the right to use in an agreement inked last year.

Remember: A dip in domestic production has pushed the country from being a net exporter to a net importer of LNG in the recent months. The government currently seeks to capitalize on a fall in global gas prices as it looks to bypass the rising cost of mazut imports and stock up on LNG supplies in preparation for an increase in demand during summer months. Egypt reportedly plans to import three LNG shipments per month between July and October, which could cost Egypt over USD 500 mn this summer, according to CNN Business Arabic’s unnamed government source. That’s more or less consistent with earlier reports that Egypt could spend USD 120 mn per month for the four months between July and October.

ICYMI: Qatar and Algeria are poised to become our two main sources of LNG, according to unconfirmed media reports last month.

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