Egypt secures large LNG purchase to meet summer energy demand
Date
6/27/2024 4:40:03 AM
(MENAFN) On Wednesday, trade sources conveyed that Egypt has successfully secured a bid to purchase 17 shipments of liquefied natural gas (LNG) for summer delivery, with a premium ranging from USD1.6 to USD1.9 over the standard price on the Dutch gas trading platform. This substantial procurement reflects Egypt's efforts to address the surging energy demand during the summer months in the country, which boasts the largest population in the Arab world.
Egypt, planning to acquire between 15 and 20 LNG shipments to meet the heightened energy needs, is now seeking an additional three cargoes for delivery between August and September, according to the sources. The tender, concluded on Wednesday, marks Egypt's most significant LNG purchase in years and underscores its return to being a net gas importer. This shift comes after dwindling supplies led to widespread power outages and the temporary closure of two chemical and fertilizer companies.
The Egyptian Natural Gas Holding Company (EGAS) has requested 17 LNG shipments, specifying seven for July, six for August, and four for September, all with delivery on board and payment terms extended up to six months. This move is crucial as Egypt's natural gas supplies, vital for electricity generation, are diminishing amidst rising energy demand driven by a growing population of 106 million, ongoing urban development, and increased consumption during the summer season.
The procurement highlights Egypt's proactive steps to ensure energy security and stability, especially during peak consumption periods, as it navigates the challenges of balancing supply and demand in a rapidly developing nation.
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