According to a statement by the ministry, the MoU aims to secure gas supplies for the liquefaction and storage terminal.
It also aims to facilitate cooperation between petroleum sector companies and the SCA in completing the necessary technical and implementation procedures required to launch construction of the new terminal.
The memorandum was signed by Egypt’s Petroleum Minister Karim Badawi and SCA’s chairman Osama Rabie.
Badawi “praised the SCA’s development initiatives and its commitment to investing in environmentally-friendly solutions, noting the significance of the project in promoting the use of natural gas as a clean fuel for ships.”
According to the statement, Rabie “appreciated the collaborative efforts of Egypt’s institutions, including the Ministry of Petroleum and its affiliated companies, the Ministry of Planning, Economic Development, and International Cooperation, to provide successful ways for establishing and operating an integrated LNG platform in the Suez Canal zone.”
He said this supports the strategic plan to transfer the canal into a “green corridor” by 2030, in line with national directives and Egypt’s clean energy transition strategy.
It is worth mentioning here that Egypt shifted from being an LNG exporter to an importer early last year due to declining domestic gas production and rising demand for cooling amid multiple heatwaves.
The country recently launched operations at another FSRU-based facility with the arrival of the first cargo at the 138,350-cbm Energos Winter in Damietta.
The Damietta FSRU is located on the Mediterranean coast, unlike the other three vessels which are located at Ain Sukhna on the Red Sea.
