Egypt's Ministry of Petroleum and Mineral Resources and the Suez Canal Authority have signed a memorandum of understanding for the development of an LNG bunkering and storage facility in the Al-Raswa area of Port Said.

The signing ceremony took place on Sunday at the authority's headquarters in Ismailia, with Karim Badawi, Minister of Petroleum and Mineral Resources, and Osama Rabie, Chairman of the Suez Canal Authority, in attendance.

According to the announcement, the MOU aims to secure gas supply for the facility and establish cooperation between petroleum sector companies and the authority to complete operational and technical procedures required for implementation.

The project has undergone study with participation from South Korean institutions, coordinated by the Ministry of Planning, Economic Development and International Cooperation. The Suez Canal Authority has signed a separate memorandum of understanding with the Korean side defining project details, implementation conditions, and economic costs.

Badawi praised the authority's development initiatives and highlighted the project's role in supporting Egypt's green transformation strategy. He noted the facility would serve as a foundation to attract new investments for similar LNG supply projects.

"We are cooperating with the Suez Canal Authority in implementing the state strategy for transitioning towards the green economy," Badawi stated, adding that the project "forms the core to attract new investments to implement similar projects to supply ships with liquefied natural gas."

Rabie said the facility would support the authority's strategic efforts to achieve a "completely green channel by 2030" in line with government policy on clean energy transition.

"The project of creation of a natural gas liquidation plant reflects the Suez Canal Authority's openness to keeping up with global developments in the maritime transportation industry, which is taking accelerated steps towards reliance on clean energy," Rabie commented.

According to the announcement, the project aligns with International Maritime Organization policies to reduce carbon emissions from the global shipping sector. The facility is intended to serve the authority's fleet of tugs and pilot boats, which are planned for conversion to LNG operation.

The Egyptian Natural Gas Company (EGAS), the Suez Canal Authority, and gas companies have held consultative meetings on the project during recent months, according to the announcement.

The MOU was signed by Ahmed Barbari, Director of Arsenal Management at the Suez Canal Authority, and Wael Latafi Mustafa, Head of the Central Projects Department at the Ministry of Petroleum and Mineral Resources.