EGPC acquires 20 shipments of LNG for $907M to meet domestic needs

CAIRO – 17 September 2024: Egyptian government has recently finalized the acquisition of 20 shipments of Liquefied Natural Gas (LNG) amounting to around $907 million. These shipments are intended to meet the nation's domestic energy needs from October to December, as per undisclosed sources cited by Reuters.

Administered by the Egyptian General Petroleum Corporation (EGPC), the procurement deal involves a unique six-month deferred payment structure. This procurement marks Egypt's inaugural winter LNG tender since the year 2018.

Renowned industry giants like Glencore, Gunvor, MEX International, Trafigura, Vitol, Hartree, BB Energy, TotalEnergies, Shell, Saudi Aramco, and BP have been selected as the key suppliers. Reports from S&P Global indicate that Aramco has secured the lion's share of shipments, with an estimated 6-7 cargoes, while other firms have been allocated 1 to 3 cargoes each.

The tender, comprising 20 shipments, primarily designates 17 for the floating import terminal at Ain Sokhna, with the remaining three earmarked for delivery to Jordan's Aqaba. This procurement represents one of the largest initiatives ever undertaken by the state-owned EGPC. The deadline for this tender was set for September 12th.

Amidst the competitive bidding process, EGPC received offers from over 15 prominent entities at rates significantly lower—reportedly 30-40 percent below the expected market prices. These rates were in the vicinity of $1 or slightly higher per million British thermal unit (BTU) premium to the benchmark Dutch TTF, which currently stands at approximately USD 0.60 per million BTU.

In the upcoming months, Egypt is poised to receive seven LNG shipments in October, six in November, and another seven in December. Looking ahead, a government source revealed that the Egyptian government anticipates importing an additional 17-20 shipments in the first quarter of 2025, as disclosed to Enterprise in recent discussions.