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Egypt Feb LNG exports at 391.3 mil cu m, a jump of 44% on month

Exports from Egypt’s Idku LNG terminal in February jumped 44% month on month to 391.3 million cu m, with Turkey absorbing the surplus, an analysis by Platts shows.

This is the highest volume of LNG exports from Egypt since May 2013.

Four cargoes were sent during the month, two of which went to Turkey, one to France and one to Singapore.

Turkey was the leading destination of Egyptian LNG in January and February, with three cargoes delivered for a total of 273.4 million cu m.

France, China, Japan and Singapore imported one cargo each over the same period.

France had been the main importer since the beginning 2018 but Egyptian volumes have fallen this year due to increased supply from both Russia and the US.

The terminal was largely idle in the early part of the decade, sending just one cargo per month, but exports resumed in the fourth quarter of 2018.

The Egyptian government plans to increase its exports further thanks to the ramp-up of the Zohr gas field.

S&P Global Platts Analytics forecasts Egypt’s domestic monthly natural gas production to expand by more than 810 million cu m before the end of 2019 through incremental production from BP’s West Nile Delta and Eni’s Zohr projects. Egypt is also expecting to start imports of gas from Israel in the near term.

“Recently, production growth from these projects have brought Egypt into a notable gas surplus, in turn allowing the Idku LNG export facility to ramp up from marginal utilization to around 35% utilization in Q4,” it said.

In addition, Shell said last month that it will deepen its commitment to Egypt ‘s upstream by taking the largest number of awards in the country’s latest licensing round. It also plans to bring gas from Cyprus and Israel to use at Egypt ‘s LNG export facilities.

Meanwhile, Egypt’s other LNG terminal, the Eni-operated 5 million mt/year Damietta terminal, remains idle. The Spanish operator Union Gas Fenosa said in a statement last month that negotiations with the Egyptian authorities are still ongoing.

Source: Platts

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