Egypt eyes LNG alternatives after drone strikes import ship

View Full Transcript

Egypt is coping after a drone strike sparked a fire at an LNG import ship on its Mediterranean coast.

There’s a lot we still don’t know. Here’s what we do:

On July 29, the government said a fire broke out on a regasification ship and an LNG vessel at the port of Damietta.

Later, the government said it was caused by a drone, but that no one has claimed responsibility.

Egypt has four regasification ships to bring in LNG. 

The government didn’t name names, but there’s only one of these at Damietta: the Energos Winter.

The other three are on the opposite side of the Suez Canal.

There’s another in nearby Jordan, which Egypt has said it’s coordinating with. That’s doable because a gas pipeline links the countries.

The government has said its energy system is unaffected and it has enough alternatives.

Still, it’s a tough time to shuffle things around. Egypt’s domestic gas output has been declining recently, so it’s needed more and more LNG fill the gap. 

The strike comes around its peak demand period.

Also, even though we still don't know the drone’s origin, the hit adds pressure to a region already reeling from widespread fighting. Now, one more country is all the more on alert.