International lenders teamed up to support Egypt’s USD 1.2 bn natural gas connection project: It looks like the World Bank, EU, and French Development Agency (AFD) have all contributed funding to the USD 1.2 bn project to connect more Egyptian households to the natural gas grid. Egypt received USD 300 mn from the World Bank, a EUR 70 mn grant from the AFD, and a EUR 68 mn grant from the EU, to connect around 1.2 mn households in 20 governorates to the grid in 2018, according to a video released by the EU’s Egypt delegation (watch here, runtime: 2:20). Collections from installation fees contributed USD 326 mn in financing to the project, while EGAS is covering the remaining USD 473 mn, according to a press release picked up by Al Mal. The Oil Ministry had said on Saturday that densely populated governorates, particularly in Upper Egypt, would receive funding priority.

Background: EU Energy Commissioner Miguel Arias Cañete is in town to sign an energy cooperation agreement that is widely expected to see Egypt begin exporting LNG to Europe but could also see additional funding expended to the project. Cañete will also hold talks with Egyptian officials, including Oil Minister Tarek El Molla and President Abdel Fattah El Sisi, and the heads of European IOCs operating in Egypt.