Sources say Egypt is seeking 20 LNG cargoes to meet winter demand, as the gas crisis worsens.
Three trading and industry sources confirmed on Friday that Egypt issued a tender for 20 cargoes (cartons) of liquefied gas to meet the demand for electricity during winter, despite a sharp decline in domestic production.
It is the first time Egypt issued an tender to cover the winter demand since 2018.
In order to be a reliable gas supplier to Europe, the most populous Arab nation has reversed its recent position of being an exporter by buying over 30 cargoes of natural gas to cover summer demand.
The Egyptian General Petroleum Corporation's (EGPC) tender closes on September 12. The company is looking for 17 cargoes to be delivered between October 4 and November 29 to Ain Sukhna port on the Red Sea and three cargoes to Aqaba in Jordan during the same time period.
Energy Aspects, a consultancy, said that Egypt's gas production plummeted in May to its lowest level for six years, with a drop of about 25% since the peak reached in 2021. It is also expected to continue to decline by another 22,5% by 2028.
In the next 10 years, power consumption in the country is expected to increase by 39%.
Sources told The Daily Star this week that Saudi Arabia and Libya had financed the purchase gas cargoes valued at $200 million in order to assist Egypt with its escalating energy crisis. (Reporting and editing by David Goodman.)
(source: Reuters)
