Egypt Seeks to Clinch LNG Deal With Algeria, But Will Pay High Price

24 Jul 2014   Algeria, Egypt

Egypt is set for an expensive price tag as it seeks to clinch a deal to import much-needed liquefied natural gas from Algeria, according to people familiar with talks between the two countries. Late last month gas-rich Algeria agreed in principle to supply Egypt with roughly five cargoes containing 145,000 cubic meters of LNG each before the end of the year. The deal, made during a visit by Egyptian President Abdel Fattah Al Sisi to Algiers, is intended to alleviate Egypt’s energy crisis after talks for it to import more gas from Qatar broke down last August due to political tensions. “We had initially hoped that Algeria could be willing to give us a good discount or flexible credit terms, but as we stand we are likely to pay a high price for the deal,” a senior Egyptian oil official said. “Algeria wants us to pay almost $13 per […]

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