Text size:

  • Small
  • Normal
  • Large

Citadel Capital forming joint venture to bring Qatari gas into Egypt

Citadel Capital has agreed with Qatari investors to import liquefied natural gas into Egypt.

Citadel Capital and a group of Qatari investors are to form a joint venture to position a floating liquefied natural gas storage and regasification unit (FSRU) off the Egyptian coast to help fill the country’s fuel gap from the middle of next year.

Egypt is a net exporter of gas, with two LNG terminals and a pipeline providing much-needed foreign currency earnings. However, recently the country has been forced to divert some gas intended for export to meet rapidly growing domestic demand after summer fuel shortages and power cuts.

The Qatari investment group, organised by QInvest, will hold a 51 per cent interest in the planned joint venture, with Citadel Capital, the private equity giant, holding the balance. “We believe that Egypt is in strong need of additional natural gas to feed the power generation sector and supply Egypt’s industrial base with a reliable, clean source of energy,” said Ahmed Heikal, the Citadel chairman.

“Citadel Capital has very strong technical skills in this sector and unrivalled knowledge of the current and planned large consumers of natural gas, thereby putting us in a unique position to market imported natural gas in Egypt.”

This is Citadel Capital’s second large project in Egypt’s energy sector with Qatari investors, following this year’s successful establishing of a US$3.7 billion (Dh13.59bn) financing package for the Egyptian Refining Company, in which Qatar Petroleum International is a key shareholder.

According to the agreement, the joint venture will import LNG, heat it back into gas on board the FSRU vessel then pump it into the Egyptian national gas grid to help meet demand from large users, such as power stations.

FSRUs, usually converted oil or gas tankers, are attractive to many new LNG importers because they are much cheaper and quicker to set up than permanent regasification facilities that can cost billions of dollars.

As the ships can be relocated during periods of lower demand, FSRUs are increasingly popular solutions to soaringenergy demand in countries where gas demand is highly seasonal.

As most of the LNG will come from Qatar, the location of the FSRU facility is likely to be on Egypt’s Red Sea coast so that tankers do not have to navigate the Suez Canal.

dblack@thenational.ae

Back to the top

More articles


Editor's Picks

 The Greens, villas: Q1 no change. 3BR - Dh210-250,000. 4BR - Dh210-260,000. 5BR - Dh220-300,000. Q1 2013-Q1 2014 5% rise. Pawan Singh / The National

In pictures: Where Dubai rents have risen and fallen, Q1 2014

Find out how rental prices in the prime locations in Dubai have altered during the first three months of the year and the current rates you will pay according to data provided by Asteco.

 Above, the private pool of Ocean Heights' five-bedroom penthouse flat. Courtesy Christie’s International Real Estate

In pictures: Penthouse flat is height of Dubai luxury living

A five-bedroom penthouse in Ocean Heights in Dubai Marina is on sale for Dh25 million and comes with a private pool and an unparalleled view of Dubai.

 The cooling towers of the Temelin nuclear power plant near the Tyn nad Vltavou in Czech Republic. The country wants to continue expanding nuclear energy capacity despite cancelling a tender to build two new units. David W Cerny / Reuters

In pictures: Best business images for the week to April 17, 2014

Here are some of the best business images for the week to April 17, 2014.

 A sign points the way to an outdoor market popular with German visitors on the Polish side of the German-Polish border. Sean Gallup / Getty Images

In pictures: A decade since the European Union went east

May 1 will mark 10 years since the European Union expanded east, taking in countries like Poland, the Czech Republic and the Baltic states as new members. And though the border region between Germany and Poland is flourishing with trade and cultural exchange, the open border has also brought a sharp rise in crime.

 The Wind, Energy, Technology and Environment Exhibition takes place from April 14 to April 16. Above, the Dewa showroom during last year’s Wetex. Jaime Puebla / The National

April corporate and economic calendar for the UAE and overseas

From Cityscape to Wetex to stock-market holidays to nations reporting first-quarter GDP figures, here is our helpful calendar of April's business events in the UAE and internationally.

 Get the latest information on credit cards, bank accounts and loan products in the UAE. Mark Lennihan / AP Photo

Rates report: Latest on UAE loans, accounts and credit cards

Souqamal.com brings you the latest interest rates on banking products in the UAE.

Events

To add your event to The National listings, click here

Get the most from The National