Egypt has signed today a deal to import a liquified natural gas (LNG) from Algeria, as the country seeks to ease a chronic energy shortage.
According to oil ministry’s statement released on Monday, the agreement is for six cargoes of 145,000 cubic metres of LNG from Algeria between April and September 2015.
The agreement was signed during Egyptian Minister Sherif Ismail’s two-day visit to Algiers that kicked off Monday.
The statement has not mentioned the price of the natural gas, “which will fall more than before after the drop in global oil prices,” a member of the delegation accompanying the Egyptian oil minister said.
Egypt has been suffering from a mounting energy crisis as domestic production of natural gas, predominantly used in power stations, was disrupted by the political turmoil of the past three years.
Securing supplies from gas-exporter Algeria is one option Egypt is pursuing to ease its worst energy crunch in decades. The country of 86 million relies heavily on gas to generate power for households and industry.
Egypt’s mainly oil-producing Gulf Arab allies cannot provide LNG.
Oil prices have fallen by about 47 percent since June, and benchmark Brent crude was trading at $60.10 on Monday.