Russia agrees to supply Egypt with gas through SWAP system

According to the “The Seventh Day” newspaper, a governmental source announced that Russia has agreed to supply Egypt with gas by using the “SWAP” system,” where “Gazprom” will provide alternative shipments for the gas being currently negotiated by Egypt with its foreign partners in “British Gas and Petronas” of its stake in ADCO. On the other hand, “Gazprom” will provide the export quotas for the foreign partner.

The SWAP system means exchanging a product for another in another place. Negotiations included the possibility of “Gazprom” provision of alternative shipments for the gas being currently negotiated by Egypt with its foreign partners in “British Gas and Petronas” of its stake in ADCO. On the other hand, “Gazprom” will provide the export quotas for the foreign partner.

The Petroleum Minister Eng. Osama Kamal and Eng. Tariq Tariq Al Barqtawi, the first Undersecretary of the Ministry of Petroleum for Exploration in Russia, discuss the amounts to be exchanged and payment methods.

On Friday, President Mohamed Morsi will start his two-day official visit to Russia where he will deal with several political as well as regional, economic and trade issues. It is scheduled that the president will carry out extensive talks with the Russian President Vladimir Putin and which aim at strengthening the bilateral relations between the two countries, consolidating the commercial exchange, increasing the Russian investments in Egypt and supporting Egypt in energy fields.

During his visit to Russia, the president is accompanied by the ministers of transport, electricity, energy, oil and foreign affairs. The ministers’ delegation will go directly to Moscow for talks with their Russian counterparts, where economy and investments will be the visit main focus.

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