(Ecofin Agency) - The Ministry of Petroleum has announced that the Egyptian Natural Gas Holding Company (EGAS) and the Arab Petroleum Pipeline Company (SUMED) has entered into the first contract for the exploitation of the Ain Sukhna Product Hub (ASPH) Jetty.

The aim of this contract, is for a $324 million investment into infrastructure projects which will boost the country’s capability to transfer and handle petroleum products in Ain Sokhna.

The ASPH project entails the building of a 2.2 km jetty capable to receive LNG carriers with 216,000 cubic meter as well as FSRUs with 170,000 cbm capacity. The LNG phase of the project, is however, expected to be completed in 2017, while the phase 2 which includes butane and fuel oil storage and trading facilities is scheduled to be completed in 2018.

In addition, three 50,000 cbm LPG tanks as well as three 35,000 cbm fuel oil tanks will be built under the ASPH project.

According to the Minister of Petroleum and Mineral Resources, Tarek El Molla (photo), acquiring petroleum and natural gas supply which could transform Egypt into an energy hub is of great importance.

Egypt at present has two FSRUs anchored in the port of Ain Sokhna. The first is the Höegh Gallant which began operations in April 2015, on a five-year charter deal for EGAS was provided by Höegh LNG. The second, is the BW Singapore which commenced operations in October also on a five-year charter deal with EGAS was provided by Singapore-based BW, LNG World News reports.