Turkey’s BGN, Qatar’s UCC, and a local bidder are competing to build Egypt’s first onshore LNG regasification terminal

Egypt is weighing three bids to build its first onshore LNG regasification terminal, with Turkish energy trader BGN, Qatar’s UCC Holding, and an unnamed local player competing to develop the facility at Ain Sokhna. The planned facility would initially be able to feed 1 bcf / d of imported gas into the national grid and would pair fixed onshore regasification infrastructure with floating LNG storage at the port. The proposals include different storage configurations of up to 290k cbm. The government has not disclosed the expected investment, construction timeline, or when it plans to select the preferred bid.

Why build onshore? Egypt currently relies on four leased floating storage and regasification units (FSRUs) — down from five units after the vessel stationed at Damietta was taken out of service late last month — which can be brought in quickly and relocated once no longer needed. A permanent onshore unit costs more and takes longer to build but gives the country infrastructure it controls over the long term and cuts its exposure to a tight, expensive global market for regasification vessels. It is also a regional infrastructure play. If domestic production remains weak, the facility provides more secure import capacity. If domestic output recovers, the facility can receive LNG for neighboring markets, regasify it, and pump it through connected pipelines.

Moroccan fertilizers back to the US, for now

Moroccan phosphate fertilizers are returning to the US market after a hiatus of over five years, with a ship carrying 54k tonnes of phosphate fertilizers from Morocco’s giant OCP landing in the US’ New Orleans Port earlier this week. The shipment comes after the Trump administration removed last June anti-dumping duties that were first introduced during Trump’s first term. The return to the US market, however, is temporary for just eight months, with the possibility of extension if the fertilizer market remains constrained due to the war.

Too risky from Yanbu, too costly from Sidi Kerir

At least two Asian refiners asked Aramco to shift September crude loadings from Yanbu to Egypt’s Sidi Kerir as Houthi-linked security concerns limit tanker availability through the Red Sea, Bloomberg reports, citing traders in the know. Aramco had already assigned Japanese and South Korean customers cargoes from Sidi Kerir for September, while most Chinese, Taiwanese, and Indian refiners were told to load at Yanbu.

Why is Saudi Arabia still loading at Yanbu? It remains the shortest and cheapest route to Asia for buyers able to secure willing tankers. The Red Sea is dangerous, not closed, with some vessels — including Chinese-owned tankers — still crossing Bab Al Mandab.

The switch solves the security problem but creates a cost issue. Sidi Kerir cargoes mean sailing around Africa to reach Asia, on top of a location premium already in Aramco’s pricing. Since September’s Asia price cut — the deepest since 2020 — applies only to crude loaded at Ras Tanura in the Gulf, cargo picked up elsewhere costs more. Add the detour, and at least one refiner may simply skip its September allocation — a flexibility built into annual contracts, according to the business information service.

MEANWHILE- Saudi Arabia and the UAE want to expand oil reserves outside the conflict-prone region, with each engaging in talks to expand reserves in Japan and South Korea, the New York Times reports, citing unnamed sources. Both countries asked Tokyo to increase their crude storage in Japan tenfold from the current 8 mn barrels each. Talks continue on final volumes and cost-sharing, with joint stockpiles expected to grow markedly.