The Egyptian Natural Gas Holding Company (EGAS) has signed a 10-year contract with Norwegian energy solutions provider Hoegh EVI to deploy a new Floating Storage and Regasification Unit (FSRU) to meet Egypt’s growing energy needs. Under the agreement, the Hoegh Gandria will be stationed at the Sumed port by the final quarter of 2026.
The Hoegh Gandria is an LNG carrier built in 2013 and registered in Singapore. Currently operating as a standard LNG carrier, the vessel will undergo conversion into an FSRU, with the retrofitting process set to begin immediately. Once converted, the Hoegh Gandria is expected to provide a regasification capacity of 1 billion standard cubic feet per day.
The new Hoegh Gandria will replace the existing FSRU Hoegh Galleon, which has been serving Egypt since July 2024. The Hoegh Galleon is expected to be relocated to the LNG terminal at Port Kembla in Australia in 2027 after completing an additional year of service in Egypt.
This decision to introduce a new FSRU comes as Egypt faces rising domestic gas demand. In September 2024, the country reached a seven-year low in LNG production, driven by increased internal energy consumption. This trend is expected to continue, especially during the summer months, prompting the Egyptian government to expand its gas supply to stabilize the energy sector.
