13 Fuel Vessels Held at Alexandria Port Awaiting Letters of Credit

13 Fuel Vessels Held at Alexandria Port Awaiting Letters of Credit

Thirteen vessels loaded with fuel shipments have been held outside the Alexandria port for several days as the Egyptian General Petroleum Corporation (EGPC) has not delivered the cost of fuel, Daily News Egypt reported citing a source at Alexandria port. Banks have not provided letters of credit (L/Cs) guaranteeing the payment of the shipment as the EGPC has failed to provide the funds required for the L/Cs.

The EGPC pays approximately $8,000 per day in waiting fees, according to sources from the Alexandria Port Authority and the EGPC.

Three other ships laden with petroleum materials are being unloaded at Alexandria port, which is running at full capacity, sources said.

Further, the petroleum authority has signed additional shipments of fuel oil contracts, anticipating an increase in the fuel consumption of power stations. However, this financial liquidity was not provided to pay the value of the shipments, an official from the EGPC added. The official also confirmed that the stalled shipments in Alexandria port are awaiting the issuing of L/Cs to be allowed to unload cargo at the port.

According to the official, the signed import contracts for petroleum product shipments include fines imposed on the EGPC for the benefit of companies due to the delay in unloading shipments and non-payments, which amount to roughly $60,000 per day for each vessel.


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