Egypt Signs MoU to Establish LNG Liquefaction, Bunkering Facility in Port Said

Egypt signed a memorandum of understanding (MoU) on Sunday to advance a major green infrastructure project involving the construction of a liquefied natural gas liquefaction and bunkering station in the Raswa area of Port Said. 

The signing ceremony was attended by Karim Badawi, Egypt’s Minister of Petroleum and Mineral Resources, and Osama Rabie, Chairman of the Suez Canal Authority, who both affirmed the strategic importance of the initiative to the nation’s energy and maritime sectors.

The agreement aims to secure gas supplies for the planned LNG liquefaction and storage facility while establishing close cooperation between the petroleum sector and the Suez Canal Authority to complete the technical and executive steps required to begin the project. 

The initiative is positioned as a key element in Egypt’s broader strategy to strengthen its energy infrastructure, increase its capacity in the natural gas sector, and enhance its role in global fuel supply chains.

In recent months, the Ministry of Petroleum, represented by the Egyptian Natural Gas Holding Company (EGAS), the Suez Canal Authority, and affiliated gas companies, held a series of consultative meetings to evaluate the technical and economic aspects of the project. 

The planned LNG station underwent extensive feasibility studies in collaboration with international institutions from South Korea, which are expected to provide essential support for the implementation phase. 

As part of this cooperation, the Suez Canal Authority signed a detailed memorandum with the Korean side outlining project specifications, execution conditions, and cost estimates, with the project now in its final procedural stages.

Badawi highlighted the project’s significance in promoting natural gas as a clean marine fuel that can reduce carbon emissions and contribute to transforming the Suez Canal into a green shipping corridor. 

He emphasized the strong coordination between the ministry and the Suez Canal Authority to deliver the project, noting that the new facility could serve as a nucleus for attracting additional investments in similar LNG bunkering projects for the global maritime industry.

On his part, Rabie affirmed that the establishment of an LNG liquefaction station reflects the Suez Canal Authority’s commitment to keeping pace with rapid global shifts in the maritime transport sector, which is increasingly moving toward clean energy and environmentally aligned policies consistent with International Maritime Organization recommendations to cut carbon emissions from shipping. 

He noted that the station is intended to serve the authority’s fleet of tugboats and ferries operating on LNG as part of a broader strategy to upgrade navigation and logistical services, aimed at preserving the canal’s leading position in global trade routes.