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Zohr discovery made Egypt ditch third FSRU – source

The huge Zohr gas discovery has prompted Egypt to drop plans for a third FSRU, but industrial gas users are still unhappy with the government The huge Zohr gas discovery has prompted Egypt to drop plans for a third FSRU, but industrial gas users are still unhappy with the government.
By Rachel Williamson 5 May 2016 Middle East & Africa / LNG 0 20169
The El-Minya cement plant in Egypt. Industrial users are waiting for a price cut to be passed through. (Suez Cement)

Egypt’s decision to abandon plans for a third FSRU was driven not by a lack of funds but by the promise of significant future gas production from Eni’s Zohr discovery, an industry leader has told Interfax Natural Gas Daily.

Alaa Ezz, secretary general of the Federation of the Egyptian Chambers of Commerce, said the promise of huge volumes coming into the domestic market by the end of 2017 made LNG unnecessary for industrial customers.

"Because of the decline in international prices, [private companies in the cement and...