Turkey’s first-ever overseas deployed regasification unit will soon head to Egypt under a charter agreement between Turkish state-owned energy firm BOTAS and the Egyptian Natural Gas Holding Company, according to a statement from the Turkish Energy Ministry. The Turkish floating storage regasification unit (FSRU) will help process LNG imports during the high-demand summer months under a “flexible and efficient utilization model that will contribute to the natural gas supply security of both our country and Egypt,” according to Turkish Energy Minister Alparslan Bayraktar.

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REMEMBER- The government is preparing for a surge in demand over the summer months, which has led the country to target importing 155-160 shipments of LNG this year to close the gap between demand and supply. Adding pressure to keep the lights on — and for Egypt to potentially overprepare — are repeated pledges from the government that the dreaded days of blackouts won’t return.

The Turkish vessel will be joined by three other vessels to process the summer uptick in LNG imports, including the already docked 750 mn cubic feet per day (mcf/d) Hoegh Galleon, the 750 mcf/d Energos Eskimo soon to make its way from Jordan’s Aqaba, and the still-unconfirmed 750 mcf/d Energos Power from Germany, according to industry publication Middle East Economic Survey (Mees), which noted that the vessel is currently en route to the Red Sea.

The name of the incoming Turkish FRSU is still under wraps, but Mees believes it will be the 750 mcf/d Vasant 1. Back in February, unconfirmed reports suggested Egypt was preparing to lease a Turkish FSRU to help meet surging domestic demand during the summer months. At the time, unnamed officials said the unit would cost the government some USD 45 mn and would remain in service until November, providing around 500 mcf/d of regasified LNG.

We also got wind of more news pointing to the country relying on LNG imports for much longer than initially planned, with the government reportedly in negotiations to secure supply contracts running until 2028 and 2030, unnamed informed insiders told Bloomberg. The news follows hot on the heels of similar negotiations for long-term contracts with Qatar and the inking of a ten-year agreement with global maritime energy infrastructure player Höegh Evi for the 1 bcf/d LNG regasification vessel Hoegh Gandria to replace the Hoegh Galleon currently docked in Ain Sokhna in 4Q 2026.

DATA POINT- Energy availability is expected to increase to 8.1 bcf/d during the summer months, with 4.0 bcf/d produced locally, 1.1 bcf/d imported from Israel, and a total 3.0 bcf/d in combined regasification capacity from the four expected vessels, according to Mees calculations using Oil Ministry and Gasco data.

WE’RE ALSO LOOKING AT MAZUT IMPORTS-

State-owned Egyptian General Petroleum Corporation (EGPC) has issued a tender to purchase just under 2 mn tons of mazut for delivery in May and June, as the government looks to cut reliance on expensive piped gas and LNG to meet rising summer electricity demand, Bloomberg reports, citing an unnamed source.

The “unusually large” mazut purchases are distorting global markets — helping push high-sulfur fuel margins in northwest Europe to their highest seasonal level since 2008. The International Energy Agency has revised up its historical global oil demand estimates, thanks in part to Egypt’s increased consumption. “These updates coincide with higher use of oil in power generation amid a natural gas shortage,” the agency said. Bloomberg notes the shift highlights not only feedstock substitution but also Egypt’s willingness to tolerate higher emissions in favor of energy security.

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