CAIRO: An agreement that secures 850,000m3 of liquefied petroleum gas (LPG) to Egypt was signed with Algeria Monday, with negotiations that the LPG supplies continue until 2020, Youm7 reported.
The LPG will be imported in April to September 2015, Minister of Petroleum Sherif Ismail, who signed the agreement with his Algerian counterpart Youcef Yousfi, said in a Tuesday press conference in Algiers.
Among other affected industrial sectors, Egypt’s energy crisis has manifested itself in the past few years in major power cuts, especially in the summer. While the majority of Egyptian households use LPG cylinders rather than natural gas, Egypt imports and subsidizes the majority of its LPG needs. However, the government plans to supply 1.5 million homes in poor areas with natural gas through an approved World Bank soft loan of $500 million in the next few years.
Ismail added in the press conference that he hoped Algeria increases its gas exports to Egypt to reduce the amount the latter imports from other countries, as Egypt will hold negotiation with Algeria in January on LPG imports from 2016 to 2020.
Egyptian and Algerian officials have exchanged visits in the past year, consolidating relations after they were brought together by aligned efforts to address the threats posed by the inflammatory conditions in Libya.
In November, 16 agreements were signed between Egypt and Algeria to create mixed contracting companies, natural gas and oil exploration, and other services.