Egypt is gearing up for the return of ships to the Suez Canal with a USD 1 bn plan to build bunkering stations, two government sources told EnterpriseAM. The plan includes fixed stations along the canal, in addition to floating bunkering barges capable of refueling Suezmax vessels — the largest of vessels that can still make the transit — each of which will be developed in partnership with the private sector, we were told.

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But this is just phase one of a wider USD 2 bn project to bring back major shipping lines through to the canal — essentially shifting the canal from serving as a toll road to a service station pit stop. Alongside the additional bunkering stations, the plan will include providing new maintenance services, logistics services, and services to transiting crews.

Helping push vessels to refuel in Egypt will require a competitive price point, with a government committee currently in talks with interested companies on the matter to see how they can provide a more attractive price than other refueling points on the global trade map.

ICYMI- The Oil Ministry and the Suez Canal Authority signed an MoU to develop a liquefied natural gas station in Port Said earlier this week. The station will liquefy, store, and supply LNG to canal tugboats and ferries, replacing conventional fuels.

In numbers: With some 36.8% of vessels currently on order being LNG-ready, the demand for LNG bunkering could hit as much as 50 mn tons of oil equivalent by 2030, according to DNV’s Maritime Forecast to 2050.

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