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Egypt, Jordan and Pakistan import more LNG

  • Spanish Market: Natural gas
  • 09/02/17

Imports of LNG to Egypt, Jordan and Pakistan have risen so far this year compared with the same period in 2016.

The countries began importing LNG in 2015 and have received the majority of their cargoes from Qatar.

Egypt

Egypt increased LNG imports in January compared with the same period last year. Eight cargoes were imported last month, up from six in January 2016. Qatar was the country's primary supplier for both periods.

Egypt has received two cargoes so far this month, both from Qatar's 77mn t/yr Ras Laffan complex. It imported six cargoes in February 2016, four from Ras Laffan and one reload each from the Netherlands' 8.7mn t/yr Gate terminal and France's 7.25mn t/yr Montoir facility.

The country may import 61 cargoes in the second half of 2017, the petroleum ministry said recently. This would represent an increase of 17pc from the 52 cargoes that Egypt received in the second half of 2016.

Egyptian state-controlled gas company Egas signed a deal last week with Omani state-owned OTI, Russia's state-controlled Rosneft and French energy firm Engie to buy up to 45 cargoes for delivery between March and December.

Egypt has received at least 145 LNG cargoes since its first import in April 2015.

Jordan

Jordan also increased LNG imports in January 2017 relative to January 2016. The country imported four cargoes last month, up from three in January of the previous year. Two of the three January 2016 cargoes were imported from Qatar, while none of the cargoes imported last month was supplied by Ras Laffan. Jordan's January 2017 LNG deliveries were imported from Bioko Island, in Equatorial Guinea, Nigeria's Bonny plant and the US.

Jordan has imported two cargoes this month, which were supplied by the 22mn t/yr Bonny facility in Nigeria and Trinidad and Tobago's 14.8mn t/yr Point Fortin terminal. The country received four cargoes in February 2016 — two from Nigeria, one from Qatar and one reloaded cargo from Montoir.

Jordan imported 48 LNG cargoes in 2016 through its 5.2mn t/yr floating storage and regasification unit (FSRU) at Aqaba. Of the 48 cargoes, 40 were for domestic customers and eight were regasified and exported through pipeline to Egypt. Cargoes were sourced from a number of suppliers, with 26 imported from Nigeria.

Jordan has received at least 70 cargoes since it began importing LNG in May 2015.

Pakistan

Pakistan imported five cargoes last month, four of which were supplied by Qatar and one by Nigeria. Pakistan has received one cargo so far this month, also from Qatar.

Pakistan imported four cargoes during January and February of last year — one Spanish reload, one cargo from Trinidad and Tobago, one from Australia's 7.8mn t/yr Gladstone LNG project and one from Qatar. One cargo was delivered in January and the remainder in February.

Pakistan is increasing its import capacity with the construction of three FSRU projects that are expected to become operational by 2019. The country has one operational FSRU, which is located at Port Qasim. The 150,900m³ Exquisite has a capacity of 5mn t/yr and was supplied by US firm Excelerate Energy.

Excelerate recently signed a contract with Shell, Karachi-based Engro and local conglomerate Fatima to install its second FSRU in Pakistan in 2018.

Local private-sector firm Global Energy Infrastructure is developing a 5.4mn t/yr LNG import facility in partnership with Qatari state-owned QP, Total, ExxonMobil, Japanese trading house Mitsubishi and Norwegian shipowner Hoegh LNG.

And Bermuda-based shipping company BW Group will supply the 170,000m³ BW Integrity FSRU to Pakistan by the middle of this year.

State-run Pakistan LNG awarded two large tenders in January to buy LNG over five and 15-year periods. The cargoes from both tenders are allocated for delivery to the BW Integrity. Delivery for both tenders is scheduled to begin in June.

Switzerland-based trading firm Gunvor was awarded the five-year tender to supply 60 cargoes, and Italy's Eni won the 15-year tender for delivery of 180 cargoes. Both tenders were priced at around 12pc of Brent crude.

Pakistan has imported at least 62 cargoes since its first LNG import in March 2015. Qatar supplied most of Pakistan's 2016 LNG imports.

Global liquefaction capacity will rise in the second half of 2017, as 16mn t/yr of capacity will come on line in the US, followed by 14mn t/yr in Australia. Pakistan and Egypt could absorb some of this additional global LNG.


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