Rosneft makes LNG deal with Egypt

MOSCOW, Aug. 27 (UPI) -- Russian energy company Rosneft said Thursday it was marking its frontier entry into the global liquefied natural gas market through a deal in Egypt.

Rosneft signed an LNG supply and purchase agreement with the Egyptian Natural Gas Holding Co. Documents were signed between Rosneft board members and their Egyptian counterparts during a visit to Moscow by Egyptian President Abdel Fattal el-Sisi.

"Cooperation with EGAS marks Rosneft's entry into the world LNG trading market," the company said in a statement. "Also, implementation of the provisions of the signed documents will, in the long term, open access for Rosneft to the Egyptian gas market which has a significant growth potential."

Egypt is a global leader in terms of natural gas consumption and relies currently on imports to meet domestic demand.

Alexei Miller, the chairman of Gazprom, discussed the potential for bilateral cooperation in the LNG sector with Egyptian Trade Minister Mounir Fakhry Abdel Nour during a June investment conference in St. Petersburg.

Egypt, since its 2011 revolution, has suffered energy shortages. Former Egyptian President Mohamed Morsi in 2013 said he was interested in exploring a natural gas relationship with Russia. At the time, Russian Energy Minister Alexander Novak said Gazprom was considering a swap plan so Egypt could meet contractual obligations.

Egypt would keep some natural gas designated for European markets and Gazprom would make up the difference.

The Kremlin said bilateral trade has increased by 86 percent since last year. Russian President Vladimir Putin said both sides were eager to continue the strong economic momentum.

"We are making successful advances in our energy sector projects," he said in a statement. "Rosneft, Gazprom and other Russian companies, including LUKOIL, are working in Egypt."