Suez Canal Authority and Ministry of Petroleum Establish LNG Liquefaction and Bunkering Facility in Port Said

Egypt has formalized plans to establish an LNG liquefaction, storage, and bunker fuel supply facility in the Raswa region of Port Said, taking a strategic step to accelerate the global energy transition and fuel transformation in the maritime sector. A memorandum of understanding signed on November 23, 2025, between the Suez Canal Authority (SCA) and the Ministry of Petroleum and Mineral Resources will strengthen the energy component of the "green channel" concept that Egypt aims to develop along the Canal.

The agreement encompasses securing the natural gas supply chain required for the new facility, determining technical requirements for the liquefaction and storage infrastructure, and clarifying the roles of institutions involved in the project. The accord seeks to ensure the project's sustainable progress both economically and technically by enhancing coordination between public companies in the petroleum sector and the SCA.

The preparation phase was supported by joint discussions among EGAS (Egyptian Natural Gas Holding Company), the SCA, and other gas companies. The project's feasibility was strengthened through a study prepared by international institutions from South Korea, validating Port Said's strategic position for the energy infrastructure of the "green channel." The SCA had previously signed a memorandum of understanding with the South Korean party to establish consensus on project scope, technical details, and economic costs.

Egypt's investments in LNG infrastructure aim to position the country more prominently on the Eastern Mediterranean energy map. The LNG liquefaction and bunkering facility to be built in Port Said will provide vessels transiting the Suez Canal with low-emission fuel supply options, placing the country at an advantageous position in the global maritime sector's compliance process with IMO emission standards.

The project gains significance at a time when LNG is emerging as an interim solution in the energy transition of east-west trade routes. Since the Suez Canal is one of the world's most critical waterways, with over 20,000 vessels passing through annually, transforming it into a hub for LNG bunkering will both increase Egypt's revenues and strengthen its competitive position in the global fuel supply network.

This initiative also supports Egypt's multifaceted objectives, including energy security, sustainable port infrastructure, green corridor development, fuel diversification, and market entry in the bunker sector. International assessments regarding the potential long-term integration of LNG with alternatives such as green methanol, ammonia, and LOHC demonstrate that the facility will establish a platform with future expansion capacity.

In recent years, the SCA has accelerated "green transformation" projects around the Suez Canal; fuel infrastructure initiatives to reduce ship emissions, energy efficiency, and digitalization projects aim to enhance the canal's competitive advantage. This new LNG facility is regarded as one of the first concrete projects to emerge from this vision.

The Egyptian Ministry of Petroleum, meanwhile, seeks to increase LNG liquefaction capacity to make both the domestic market and export markets a stronger energy hub. Public companies under the Ministry's control will assume active roles in the project's gas supply chain, storage infrastructure, and technical operations.

The construction timeline for the new facility will be announced after the feasibility and financing phases are completed. The project is expected to accelerate throughout 2026.

Key Points

• The SCA and Ministry of Petroleum signed a memorandum of understanding for an LNG liquefaction and bunkering facility in Port Said Raswa.

• The project forms the energy component of Egypt's "green channel" development plan.

• EGAS, South Korean institutions, and technical teams participated in the feasibility process.

• The facility aims to position the Suez Canal as a hub for low-emission maritime fuel supply through LNG bunkering.

• The project will provide operational coordination between oil and gas public companies and the SCA.

• It establishes a model capable of expansion for long-term "green fuels" infrastructure.

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News Link: https://en.portnews.ru/news/384886/

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Author: SedatOnat.com

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