Egypt indicated it’s ready to rejoin the club of major exporters of liquefied natural gas, making the biggest offer to supply the market in at least five years.
The state gas company EGAS is tendered to sell four cargoes of LNG for loading in April, three people with direct knowledge of the matter said. The bids are due March 18 and valid until March 25, according to the people, who asked not to be named because details of the tendering process is confidential.
Extra supplies from Egypt would hit a market already battling with spot prices for the super-chilled fuel trading at the lowest level since July 2017 following a mild winter that curbed demand across Europe and Asia. The US, Russia and Australia all are contributing to a glut, starting new plants to export the fuel and build market share.
For Egypt, the tender marks a revitalising of its gas industry, where sagging domestic production forced it to halt most exports of LNG in 2014. The North African nation has regained self-sufficiency with the help of major discoveries including the super-giant Zohr gas field.
Its LNG exports flow from the Damietta and Idku plants, which were largely left idle five years ago.
Egypt became a major consumer of the fuel in 2015, using its regasification and import units to take in cargoes of LNG. Those purchases that once were as large as 120 cargoes a year stopped in 2018 as flows increased from the Zohr field, setting the stage for a resumption of exports.
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