State-owned energy entities Rosneft from Russia and Egyptian Natural Gas Holding (Egas) have signed a Master LNG supply and purchase agreement which marks the entry of the Russian oil giant into global liquefied natural gas (LNG) trading.
The deal was signed during Egyptian President Hussein Abdel Fattah Saeed Khalil al-Sisi’s visit to Russia.
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Under the terms of the agreement, Russia will be supplying LNG to the Arab Republic of Egypt.
Egypt has been facing energy shortages since its 2011 revolution, reports UPI.com
The country, which is a leader in terms of natural gas consumption among African countries, depends on foreign imports to meet its present energy demands.
Rosneft said: "Cooperation with EGAS marks Rosneft Group’s entry into the world LNG trading market.
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By GlobalData"Also, implementation of the provisions of the signed documents will, in the long term, open access for Rosneft Group to the Egyptian gas market which has a significant growth potential."
According to Rosneft chairman Igor Sechin, the new Suez Canal is likely to ease and boost international maritime traffic, which in turn will prompt Russia to increase its investments in Egypt.
Sisi has welcomed Rosneft’s intention to benefit from Egypt’s geographical location. The Russian oil firm intends to store petroleum products in Egypt in order to quicken its transportation to other locations, especially in the Middle East and Africa.
