In a strategic move to reinforce national energy infrastructure, Egypt has signed a 10-year lease agreement with global LNG giant Höegh LNG to expand its floating gas storage and regasification capacity. The agreement, announced by the Egyptian Natural Gas Holding Company (EGAS), will see the deployment of the Höegh Galleon as a Floating Storage and Regasification Unit (FSRU) at Ain Sokhna’s SUMED port by the end of 2026.
The Höegh Galleon, which will undergo conversion from a standard LNG carrier into a full-fledged FSRU, will have the ability to regasify up to 1 billion cubic feet of LNG per day. Once operational, it will replace the existing unit and become the core component of Egypt’s LNG import terminal infrastructure.
This agreement marks a significant upgrade in Egypt’s energy capabilities. As domestic energy demand continues to grow, the ability to import and efficiently regasify LNG plays a vital role in sustaining electricity production, industrial growth, and overall economic stability.
In parallel to this agreement, Egypt is also in advanced discussions with Qatar on long-term gas supply deals. These negotiations aim to strengthen the country's energy resilience and establish Egypt as a key LNG trading and distribution hub in the region.
Egyptian Minister of Petroleum Karim Badawi met with Qatar’s Minister of Energy Saad Sherida Al Kaabi to discuss collaborative prospects in LNG trading, liquefaction, and infrastructure development. The goal is not only to meet domestic needs but also to enhance Egypt’s positioning in the global energy market.
The partnership with Höegh LNG demonstrates Egypt’s forward-thinking approach in adapting to global energy trends, investing in flexible infrastructure, and ensuring long-term sustainability. With regional tensions and global supply fluctuations affecting energy markets worldwide, such investments provide a critical buffer and showcase Egypt’s commitment to energy security.
As the global energy landscape evolves, Egypt is clearly positioning itself to be a reliable player in LNG markets—not just as a consumer, but as a strategic facilitator for energy flows across the Middle East and beyond.