Egypt Turns To Fuel Oil For Electricity Generation Amid Rising Gas Prices

Egypt is turning to fuel oil to power its plants due to soaring natural gas prices. The Egyptian General Petroleum Corporation (EGPC) is seeking to purchase nearly 2 million tons of fuel oil for delivery in May and June.

This move comes as Egypt’s domestic natural gas output declines, forcing the country to rely on liquefied natural gas (LNG) imports.

In a bid to meet rising demand, Egypt has signed a 10-year agreement with Hoegh Evi to deploy a floating LNG import unit near Alexandria.

The floating storage and regasification unit (FSRU) will supply up to 1,000 mmscf/day of peak LNG regasification capacity.

This development is part of Egypt’s efforts to diversify its energy infrastructure and address dwindling domestic production. The country has become a net LNG importer, a stark contrast to its status as a net LNG exporter just a year ago.

North African and Middle Eastern countries often resort to oil and direct crude burn for power generation during peak summer demand.

Source: https://energynewsafrica.com