Egypt to Receive 1,000 mmscf/day LNG Regasification Capacity with New Floating Unit by Q4 2026
In a significant move to expand its energy infrastructure, Höegh Evi has entered into a long-term partnership with the Egyptian Natural Gas Holding Company (EGAS) to convert a former LNG carrier into a Floating Storage and Regasification Unit (FSRU). The unit will be stationed at Egypt’s Port of Sumed by the end of 2026, with a capacity to regasify up to 1,000 million standard cubic feet per day (mmscf/day) of LNG.
This deal marks another step forward in Egypt’s strategy to secure a diverse and reliable energy supply, vital for its growing economy and energy demands. Under a 10-year charter agreement, the Höegh Gandria LNG carrier will be refitted into a state-of-the-art FSRU to play a crucial role in Egypt’s energy mix, providing LNG regasification capabilities.
Transitioning to Floating Regasification: The Conversion Process
The conversion of the Hoegh Gandria to a floating import terminal is a process that involves more than just technical modifications. Höegh Evi plans to accelerate the deployment by initially transforming the vessel into a temporary floating regasification unit, allowing for an earlier operational date. This step will ensure that the LNG regasification capabilities are available before the full-scale conversion is completed.
The floating regasification terminal will support the import and regasification of LNG, turning it back into natural gas that can be pumped into Egypt’s domestic energy grid. The FSRU will provide the infrastructure needed for handling peak LNG import volumes, easing pressure on Egypt’s current energy systems.
The full conversion project, which includes the necessary upgrades to the vessel’s systems, is expected to be completed promptly to meet the set delivery timeline. By the fourth quarter of 2026, the FSRU Hoegh Gandria will be operational, supporting Egypt’s growing energy needs.
The Role of Floating Storage and Regasification Units
Floating Storage and Regasification Units (FSRUs) have become a critical component in global LNG infrastructure, providing an efficient way for countries to import and regasify natural gas. These mobile units are often used in areas where building onshore infrastructure is expensive, time-consuming, or impractical.
For Egypt, the strategic deployment of FSRUs is a key part of its effort to secure flexible, long-term energy solutions. The country’s increasing demand for natural gas, coupled with its ambitious industrial growth plans, means that access to reliable and diversified energy sources is paramount.
Replacing the Hoegh Galleon
The Hoegh Gandria will replace the Hoegh Galleon, which has been operating as Egypt’s FSRU since 2024. The Hoegh Galleon will be temporarily chartered to Australian Industrial Energy, where it will remain until 2027, providing regasification support to Australia’s Port Kembla LNG terminal. This switch marks the beginning of an efficient handover of assets that will further boost both Egypt’s and Australia’s LNG infrastructure.
The decision to replace the Hoegh Galleon with the Hoegh Gandria for the Egyptian market allows Höegh Evi to continue strengthening its relationship with EGAS. The flexibility of marine-based LNG infrastructure is particularly beneficial in maintaining energy security and ensuring Egypt’s energy needs are met in an efficient manner.
Höegh Evi’s Role in Egypt’s Energy Growth
Erik Nyheim, President and CEO of Höegh Evi, expressed pride in his company’s long-standing partnership with Egypt. “We are excited to begin the conversion of Hoegh Gandria to a floating import terminal, highlighting the unique flexibility of marine infrastructure,” Nyheim said. The new FSRU is a key step toward enhancing Egypt’s energy system, and Höegh Evi is committed to ensuring that this project will contribute to the country’s ongoing energy diversification efforts.
Strategic Partnership and Long-Term Benefits
The collaboration between Höegh Evi and EGAS highlights the growing importance of energy partnerships in the region. For Egypt, this agreement not only secures a reliable source of LNG regasification capacity but also supports the country’s broader goals of energy security and economic growth. The move to integrate more flexible marine-based infrastructure also helps Egypt position itself as a key player in the global LNG market.
The conversion of the Hoegh Gandria into an FSRU is expected to be just one part of a larger transformation within Egypt’s energy infrastructure. As the country moves forward with more ambitious projects to diversify its energy portfolio, partnerships like this one with Höegh Evi will play a crucial role in supporting future growth.
