Egypt’s Giant Gas Field Not to Affect Contracts With Russia

CAIRO (Sputnik) – The discovery of a giant gas field in the Mediterranean Sea off the Egyptian coast will not affect Egypt’s planned or already signed contracts with Russian oil and gas companies, spokesman of the Egyptian Ministry of Petroleum and Mineral Resources Hamdi Abdelaziz told RIA Novosti Monday.

Following the discovery of potentially the world's largest natural-gas field, announced by the country’s petroleum ministry on Sunday, Abdelaziz said that Cairo plans to suspend all natural gas imports for three to five years.

“Egypt respects the agreements that it signs and will implement all the projects,” the spokesman said.

Earlier in August, Russian Gazprom Global LNG Ltd. and Egyptian Natural Gas Holding Company (EGAS) signed an agreement for liquefied natural gas deliveries to Egypt, envisaging gas deliveries until 2019.

Russia's Rosneft energy company signed a framework agreement with EGAS in July. The agreement covers the delivery of liquefied natural gas to Egypt by Rosneft for a period of two years starting from the fourth quarter of 2015, according to Egyptian Ministry of Petroleum.

The discovered natural gas reserves, with an estimated volume of about 30 trillion cubic feet, will provide Egypt with enough gas to cover its domestic consumption needs for at least ten years, according to the ministry's statement.