Egypt’s state-owned Natural Gas Holding Company (EGAS) has made its first payments to suppliers of liquefied natural gas (LNG) since the payment terms for deliveries were extended in December, reported Reuters.
LNG traders said that EGAS had not paid suppliers since December 2015, when the payment terms were extended to 90 days instead of the usual 15 days due to the country’s foreign currency crisis.
Khaled Abdel Badie, the Chairman of EGAS, told Reuters that his company had made all payments that were due on LNG shipments but did not specify whether these were the first payments this year.
Egypt imports around six to eight cargoes of LNG per month. Market participants said that Egypt now owed $1b to LNG suppliers and that the extended payment terms mean an increased risk profile for Egypt’s LNG arrangements going forward, LNG Industry wrote.
LNG suppliers to Egypt include BP, Trafigura, Shell, Gas Natural, Vitol, EDF Trading, PetroChina, and Noble.