Egyptian Natural Gas Holding Company (EGAS) has tendered to buy at least 48 cargoes of LNG for delivery in 2015/16, reported Reuters, citing three traders. A senior EGAS official also told Reuters that the result of the tender was due by the end of December and that seven companies had bid, adding that the contract would be split among multiple companies.
Egypt can export LNG but cannot currently import it. In exclusive statements made to Al-Borsa by EGAS Chairman Khaled Abdel Badie, it was further revealed that his company has offered a second tender to import 500m cubic feet of gas a day to bolster power plant production. Another 500m cubic feet earmarked for power plants will reach the Port of Ain Sukhna by next March from Port Said thanks to a second liquid natural gas (LNG) vessel, owned by Norway’s Hoegh LNG Ltd. The contract for importing LNG shipments will be for two years subject to renewal and will be signed with companies to supply around 40 shipments annually.
The LNG price will be in accordance with international prices at the time of supply. There will not be a specified price due to the fact that prices vary in markets, Mr Abdel Badie explained. The deal was signed with LNG Ltd Chairman Sveinung Stohle for the first LNG vessel to receive and store the LNG shipment. The vessels will also return the supplies to their gaseous states, and then pump them to the natural gas national network. Contract stipulations include renting the vessel for five years in order to provide quantities of natural gas in excess of 500 million cubic feet per day.
“The company has received seven offers from Arab and foreign companies as well as a subsidiary company of the Egyptian petroleum sector in the current gas import tender,” Abdel Badie went on to say. “As soon as the technical and commercial overview is complete, the decision will be announced before the end of this month.” He also confirmed that Algeria’s SONATRACH and Russia’s Gazprom did not apply for the current tender, but since both companies were already contracted to supply 14 shipments of LNG they did not submit offers for the tender.