Egypt

Egypt's tender for 17 LNG cargoes has been fully awarded

Published on : 2024-06-27

Egypt's recent tender seeking 17 cargoes of liquefied natural gas (LNG) for delivery during the summer has been fully awarded, at a premium of $1.60-$1.90 to the benchmark gas price at the Dutch TTF hub, trading sources told Reuters on Wednesday.

The most populous Arab country plans to buy 15-20 cargoes of LNG to cover rising demand for power during the summer. It is seeking three more cargoes for delivery in August-September, the sources said.

The tender, which closed on Wednesday, marks Egypt's largest LNG purchase in years and returns it to being a net importer of gas after dwindling supplies led to a wave of rolling blackouts and forced temporary shutdowns of chemical and fertilizer plants.

Egypt's Natural Gas Holding Company (EGAS) had sought delivery of 17 LNG cargoes, including seven in July, six in August and four in September on an ex-ship (DES) basis, with deferred payments of up to six months.

Natural gas supplies that help Egypt generate electricity have been dwindling as its growing population of 106 million and urban development have been pushing up power needs while high cooling demand during summer drives up consumption.

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