Glencore comes out top as Egypt awards mega LNG import tender - REUTERS

Mon Nov 28, 2016 | 3:37pm GMTReporting by Mark Tay; Additional reporting by Henning Gloystein in Singapore and Eric Knecht in Cairo; Editing by Susan Fenton

• EGAS awards mega tender, taking mainly 2017 cargoes
• Glencore emerges as top supplier, followed by Trafigura
• Jan-Mar 2017 cargoes priced at about 15 percent to crude
• Remainder of 2017 cargoes priced lower as fundamentals expected to weaken

Egypt will import around 60 cargoes of liquefied natural gas (LNG) next year and Glencore will be the biggest supplier, trading sources with knowledge of the results of Egypt's mega tender for 2017 and 2018 said on Monday.

Glencore bagged the right to supply around 25 liquefied natural gas (LNG) cargoes to Egypt, while second-placed Trafigura is understood to have won the right to supply about 18 cargoes of the super-cooled fuel, the trading sources said.

Other parties successful in Egypt Natural Gas Holding's (EGAS) tender included BB Energy, Gunvor and Vitol, the sources added.

Egypt launches record LNG tender for 96 cargoes -trade - REUTERS

Mon Oct 24, 2016 | 10:58am BST

By Oleg Vukmanovic, Editing by Susan Fenton and Jason Neely

Egypt launched the world's biggest tender for liquefied natural gas (LNG) on Sunday as officials from top energy companies and trading houses converged on Cairo undeterred by new rules forcing them to wait even longer to get paid.

After months of speculation and delay, state-run Egypt Natural Gas Holding (EGAS) released tender documents on Sunday bidding to secure 96 LNG shipments in 2017 and 2018, participants in the tender told Reuters.

An additional 12 optional cargoes were included in the tender, which EGAS may decide not to award, they said.

It is the biggest mid-term LNG buy tender ever issued, trade sources said.

Egypt negotiates with Kuwait to renew contract to supply 3m barrels per month | Daily News Egypt

Crude oil imported from Kuwait Petroleum Corporation helps save fuel in local market, says official

Mohamed Adel, January 21, 2016

The Egyptian General Petroleum Corporation (EGPC) is negotiating with the Kuwait Petroleum Corporation (KPC) to renew a contract to supply 3m barrels of crude oil to Egypt per month with payment facilitations for the value of the shipments.

The contract is expected to be finalised by the conclusion of next September.

Egypt Skips Gas Bill, Loses LNG Shipment | The Maritime Executive

British Sapphire, image courtesy ATSB

By Reuters 2016-01-21

BP's diversion of a tanker of liquefied natural gas (LNG) away from Egypt due to payment issues is the first sign that the country's currency crisis could be jeopardizing its energy supplies, traders said.

Earlier this month the tanker British Sapphire was diverted to Brazil rather than discharging in Egypt, with the delivery of the LNG cargo for Egypt delayed up until October, traders said.

Egypt struggles to pay for oil, LNG supply amid foreign currency crisis | Reuters

LONDON/MILAN | By Sarah McFarlane and Libby George

Dec 23 - Egypt is struggling to pay for U.S. dollar-priced oil product and liquefied natural gas (LNG) imports, cancelling purchases, and asking suppliers to extend payment terms amid an acute foreign currency crisis, industry sources said.

Egypt, which depends on oil and gas imports, has faced a sharper decline in foreign currency receipts after a plane carrying Russian tourists crashed in October while low oil prices limit aid from Gulf allies, banking and trade sources said.

The sources said that Egypt has asked oil and LNG suppliers to extend payment terms to 90 days after delivery earlier this month due to its foreign currency crisis.


Egypt is struggling to pay for U.S. dollar-priced oil product and liquefied natural gas (LNG) imports, cancelling purchases, and asking suppliers to extend payment terms amid an acute foreign currency crisis, industry sources said.

Egypt, which depends on oil and gas imports, has faced a sharper decline in foreign currency receipts since the Russian airliner disaster in October, which has hit tourism, while low oil prices limit aid from Gulf allies, banking and trade sources said.

The sources said that Egypt has asked oil and LNG suppliers to extend payment terms to 90 days after delivery earlier this month due to the currency crisis.

According to existing arrangements, Egypt is obliged to pay for LNG imports 15 days after a cargo unloads.

"The combination of the weaker tourism sector, along with low oil prices tightening the budgets of GCC countries who have traditionally helped Egypt pay for commodities, is hitting foreign currency reserves," a banking source said.

"These elements and the Central Bank's wish not to close the year while depleting the levels of reserves triggered the request (to extend payment terms)," he said.

Short of dollars, Egypt has also cancelled the purchases of six gasoil cargoes initially scheduled for early January, oil market sources said.

"Those who can handle it will consider the extended payment," one oil trader said.

Payment delays have created a logjam of cargoes outside Egyptian ports, including at least six clean and three dirty product cargoes.

A source familiar with the matter estimated that Egypt is late in paying around $350 million to LNG suppliers.

"There's a possibility that some suppliers will not be accommodating and will walk away," he said, although LNG suppliers surveyed by Reuters denied they had any such intention.

Egypt imports around six to eight cargoes of LNG per month, valued at around $20 million to $25 million per cargo.

Its suppliers include BP, Shell, Gas Natural, Trafigura, Vitol, EDF Trading, PetroChina and Noble.

Egypt has emerged as a major new market for LNG as the government looks to ease the worst energy crunch in decades.

Falling output and rising demand have transformed the country from an oil and gas exporter to net importer.


Meanwhile on Wednesday Egypt's General Authority for Supply Commodities said it had changed the terms of payment for wheat purchased in its tenders.

(Additional reporting by Oleg Vukmanovic in Milan, Dmitry Zhdannikov in London and Lin Noueihed and Eric Knecht in Cairo.; Writing by Oleg Vukmanovic; Editing by Jane Merriman, Greg Mahlich)

SOURCE