LONDON, (Reuters) – Egypt has bought 20 cargoes of liquefied natural gas (LNG) via the first tender issued to cover its winter demand since 2018, securing full volumes it was seeking at smaller than expected premiums, trading sources told Reuters
The most populous Arab country has returned to being a net importer of natural gas this year, buying more than 50 cargoes so far this year and abandoning plans to become a reliable supplier to Europe
The Egyptian General Petroleum Corporation (EGPC) has closed the tender on Sept. 12. The purchases aim to cover demand for the fourth quarter of 2024. EGPC has awarded the tender on a six-month deferred payment basis.
“Despite the geopolitical challenges in the region and market tightness, EGPC received offers from more than 15 major players at very competitive rates that were 30%-40% less than expected market prices,” a trading source said.
Pricing expectation
The prices for this tender have descended from the previous 20-cargo tender awarded by EGPC in June for Q3 deliveries.
The June tender was awarded between TTF plus $1.60/MMBtu and $2/MMBtu.
Traders were earlier expecting the latest tender to be awarded between TTF plus $1.3/MMBtu and $1.5/MMBtu.
