(Ecofin Agency) - Rosneft on Tuesday revealed that it is considering the possibility of constructing an oil and gas terminal in Egypt's Suez Canal Economic Zone.

According to the Russian trade envoy to Egypt, Fedor Lukashin, preparations are ongoing between Rosneft and Suez economic zone authorities to meet and discuss on the hydrocarbon terminal project.

“Currently, the proposal to build a hydrocarbon terminal in the Suez Canal zone has been looked into the most. Rosneft is planning to take part in the project from the Russian side,” he said.

Russia and Egypt have been strengthening their cooperation in the energy area. In 2015, the Russian trade representation in Egypt handed a total of 11 oil and gas development proposals from the Egyptian authorities to the Russian companies.

Also in July of that year, Rosneft entered into a framework liquefied natural gas (LNG) supply agreement with the Egyptian Natural Gas Holding Company (EGAS) as well as a Master LNG Supply and Purchase Agreement the month after.

The Master LNG supply agreement involves five deliveries. The first gas supply occurred in May, 2016, Sputnik news reports.

Anita Fatunji