Russian oil company Rosneft said on Friday it had delivered its first cargo of liquefied natural gas (LNG) to Egypt, its debut in the global LNG trade.
It said the GOLAR ICE tanker supplied the cargo from Rosneft Trading SA to Egyptian Natural Gas Holding Company in the port of Ain Sukhna on Egypt’s Red Sea coast, as part of a deal agreed in August 2015.
The delivery of the cargo was first announced by an official at the state gas board EGAS on Thursday.
Rosneft, which does not produce LNG itself, said the cargo was bought on the global spot market.
Rosneft, headed by Igor Sechin, a long-standing ally of Russian President Vladimir Putin, has been seeking to increase its presence on global energy markets.
Industry sources have said oil major Shell was expected to supply LNG to Rosneft, which has no direct access to the fuel, allowing it to meet delivery obligations in Egypt.
A Rosneft spokesman declined comment on the sourcing of the fuel.
Last year, Egypt and Rosneft signed a memorandum of understanding for a slew of petroleum products as well as 24 LNG cargoes. Only nine of the 24 initially agreed cargoes were later inked into a final deal.
Global traders such as Glencore, Trafigura and Vitol have been vying for the LNG market, which has traditionally been largely frozen in decades-long contracts but now looks set to thaw.
Trading companies, which industry sources say have so far accounted for less than 10% of LNG trade, could help trigger a more liquid Asian LNG market, with exchanges from Singapore to Tokyo launching indices and futures contracts in preparation.