Egypt’s bid to position itself as the premier energy hub in the eastern Mediterranean got another boost yesterday on the Levant side of the equation as the Oil Ministry signed two MoUs to help fuel Syria’s reconstruction with the supply of natural gas and petroleum products.

What’s in the agreement: Egypt will use its floating storage and regasification units (FSRUs) and the national gas grid to regasify and transport fuel to Damascus for power generation. The agreements also open the door for Egyptian technical expertise to be used in rehabilitating Syria’s midstream and downstream energy infrastructure, according to a statement from Egypt’s Cabinet.

The Madbouly government made its positioning crystal clear in the statement, saying that the MoU reflects our position as a “logistics hub for trading all types of conventional and renewable energy.”

Egypt inked a similar supply agreement with Lebanon last week and has also locked-in a long-term transit agreement with Cyprus, part of a broader strategy to position ourselves as the East Med’s premier energy hub. Other components of the strategy include fuel bunkering facilities on the Suez Canal and the export of green fuel and green electrons to Europe.

We have four FSRUs in place right now, including the Hoegh Galleon, Energos Power, Energos Eskimo, and Energos Winter. The first three are moored in Ain Sokhna, while the Winter is in Damietta. The Hoegh Gandria will arrive in Egypt at the end of this year to replace the Galleon on a 10-year lease. The four current vessels give us c. 2.7 bcf / day of regasification capacity. We exclusively reported last month that the Oil Ministry had shelved plans to phase-out the FSRUs.

Other oil + gas news

Egypt paid the UAE’s Dana Gas USD 50 mn in overdue receivables, a move that comes as the regional player plans to drill seven new natural gas wells in 2026, according to a statement (pdf) from the company. The drilling project is part of a broader program to drill a total of 11 new wells here. Dana reported a discovery at its North El Basant 1 concession last month.

Why it matters: Paying dues to energy companies leads debottlenecks the exploration activity that in turn supports growth in domestic production. Dana says its 2026 drilling program should save Egypt over USD 1 bn by reducing reliance on imported LNG and mazut.

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