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Wednesday, 13 April 2016

Aramco-SUMED MoU to increase gas supplies to Europe, could create a regional gas hub

The Aramco-SUMED agreement “could turn the Sidi Kerir port on the Mediterranean coast into a regional hub for the sale of Saudi crude to Europe,” the Oil Ministry said, according to Reuters’ Arabic service. Egypt signed an MoU with Saudi Arabia increasing the volume of crude pumped through the SUMED pipeline without giving current or future volumes nor providing any financial details. The agreement, which also involves using Egyptian storage capabilities “could frustrate Iran, whose oil flows to Europe have begun to pick up from a slow start since sanctions were lifted in January,” Reuters adds. The SUMED pipeline is 320 km and connects the Ain Sokhna terminal on the Gulf of Suez to offshore Sidi Kerir, west of Alexandria. EGPC has a 50% stake in the pipeline, with the remainder spread between Saudi Arabia, Kuwait, and the UAE who each have a 15% share, and Qatar with 5%.

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