Three Major Companies Plan to Bunker LNG in Egypt

Egyptian Natural Gas Holding Company (EGAS), Kanfer Shipping, and Leth Suez Transit hope to work with commodities traders to develop a strategic and competitive liquefied natural gas (LNG) bunkering hub in the Suez Canal.

The three companies agreed to create LNG bunkering services in Egypt's Mediterranean, Suez Canal, and Red Sea by signing a Memorandum of Understanding in February 2022. The companies decided to work together and form a joint venture to hire a bunkering ship from KANFER and oversee its regular operations in Egypt.

Egypt is claimed to have one of the primary advantages for bunkering, which puts the nation in a competitive position, in its natural gas resources and liquefaction facilities. Damietta, the IDKU terminal, and the FSRU stationed at Ain Sokhna are Egypt's LNG sources, providing flexibility and expanding the options for LNG bunkering in both Port Said and Suez.

“The key LNG hubs of the world must import the LNG to their terminals, which adds considerable cost to the end-users. We are confident that the JV can provide competitive prices to the key ports and hubs such as Singapore and ARA. We believe that this will attract shipowners and influence their decision-making on where they will replenish LNG,” said Kanfer Managing Partner Stig Hagen.

EGAS was the one who organized the formation of the joint venture with the appropriate value-adding partners. It will hire the bunkering ship and handle all administrative matters, including the ship's daily operations. Additionally, it will buy LNG from EGAS (or other LNG suppliers) and trade it with ship owners and the maritime industry.

Leth and Kanfer said in a statement that they are seeking joint venture partners who have expertise in bunkering and/or commodity trading and can take an active role in creating a business model for this high potential and attractive project in Egypt.