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

The Egyptian government has finalized the purchase of 20 shipments of Liquefied Natural Gas (LNG) worth approximately $907 million to meet the country’s domestic energy demands between October and December 2024, according to undisclosed sources cited by Reuters.

The procurement, overseen by the Egyptian General Petroleum Corporation (EGPC), features a six-month deferred payment plan. This marks Egypt’s first winter LNG tender since 2018.

Major suppliers selected include Glencore, Gunvor, MEX International, Trafigura, Vitol, Hartree, BB Energy, TotalEnergies, Shell, Saudi Aramco, and BP. Reports suggest Saudi Aramco secured 6-7 cargoes, with other firms allocated 1-3 each.

Out of the 20 shipments, 17 will be delivered to the floating import terminal at Ain Sokhna, while the remaining 3 are destined for Aqaba, Jordan. This tender represents one of the largest initiatives by EGPC, with offers from over 15 companies coming in 30-40% below expected market prices, around $1 per million British thermal units (BTU) above the Dutch TTF benchmark.

Egypt is set to receive seven LNG shipments in October, six in November, and another seven in December. Additionally, the government expects to import 17-20 more shipments in the first quarter of 2025.