This marks NFE's second FSRU deployment in Egypt, further solidifying its presence in the region's energy market.
New Fortress Energy Inc. today announced a significant expansion of its operations in Egypt, having executed a five-year agreement for the deployment of its 138,250 cubic meter floating storage and regasification unit (FSRU), the Energos Winter, with the Egyptian Natural Gas Holding Company (EGAS). This strategic partnership will see the Energos Winter operating at EGAS’ liquefied natural gas (LNG) import terminal located in Damietta, Egypt, commencing as early as August of this year.
This new agreement marks a substantial reinforcement of NFE's commitment to supporting Egypt's energy security. The Energos Winter will be the second NFE-owned FSRU to be stationed in the North African nation, joining the Energos Eskimo, which is already providing crucial regasification services. The dual presence of these advanced floating terminals underscores the growing demand for reliable and flexible natural gas supply solutions in the region.
Chris Guinta, CFO of New Fortress Energy, expressed his satisfaction with the strengthened collaboration. "We are pleased to reinforce our relationship with EGAS by way of our deployment of a second FSRU to Egypt," Guinta stated. "This deal enhances NFE’s goals of providing reliable and cost-effective energy across the globe." His comments highlight NFE's broader strategy of expanding its global footprint and delivering essential energy infrastructure to key markets.
Echoing Guinta's sentiments, Yasseen Mohamed, Executive Managing Director of EGAS, emphasized the importance of the renewed partnership. "EGAS is pleased to strengthen its long-standing partnership with New Fortress Energy through the execution of a second Regasification Service Agreement," Mohamed remarked. He further elaborated on the FSRU's role, stating, "Under this agreement, NFE’s second FSRU, Energos Winter, will provide regasification services at the Damietta terminal, contributing to the security of natural gas supply for the Arab Republic of Egypt over the next five years." This extended five-year commitment provides long-term stability for Egypt's natural gas imports, crucial for powering its industries and meeting domestic energy needs.
The deployment of a second FSRU is particularly significant for Egypt, a nation increasingly reliant on natural gas for power generation and industrial consumption. FSRUs offer a flexible and cost-effective solution for importing LNG, allowing countries to bypass the need for extensive onshore regasification terminals, which are often time-consuming and expensive to build. The ability to quickly deploy these units helps countries like Egypt respond to fluctuating energy demands and secure a diversified energy mix.
