Egypt looks to LNG quick fix

Off-take agreements complicate Egyptian option

Advocates of Egyptian solutions for monetising Cypriot and Israeli gas discoveries lean on two planks — large domestic demand and two LNG plants that have already been constructed and thus offer a 'cheap' export solution. But there are a number of problems with both of these arguments. Egypt will need additional supplies the equivalent of a Zohr field every two-to-three years to satisfy its growing demand for power, according to Ryan Pereira, global director, gas and LNG at consultancy Gaffney Cline. However, finding a country comparable to Egypt that has experienced that level of exponential demand growth is not easy. It remains an uncomfortable truth for the "pipe-it-to-Egypt" supporters t