Despite the UK government's easing…
The uneven economic recovery of…
Egypt has chosen three firms to supply liquefied natural gas to its markets for the remainder of 2016, closing a tender it had issued two weeks ago, according to a recent report by Reuters.
Glencore, an Anglo-Swiss commodities trading house, will supply cargo for October; Dutch Trafigura will deliver a shipment for November; and U.K.-based B.B. Energy – a relatively new player in the LNG trade – will arrange the December order.
Trafigura is the third-largest oil and metals trader in the world, after Geneva-based Vitol and Glencore.
The government-run Egyptian Holding Company for Natural Gas (EGAS) announced yesterday that it had bought 89 LNG shipments during the 2015-2016 fiscal year to fill the gap between energy supply and demand. The cost of the imports totaled $2.2 billion.
Egypt requires 5.6 billion cubic feet of natural gas a day to meet consumer demands, according to the Ministry of Petroleum.
A total of 14 new natural gas discoveries – holding 31.5 trillion cubic feet of the fossil fuel – were made in Egypt during the past fiscal year, according to EGAS.
Cairo has mandated that new Egyptian output from the fresh fields be made available to Egyptians before it is exported. The country aims to increase its natural gas production by 30 percent by 2019.
Some of the major foreign players in Egypt’s oil and gas business include BP, Italy’s Eni, and Apache Corporation.
In related news, Egyptian authorities said this week that they intend to start their initial public offerings (IPOs) program with state-held oil companies, in a plan to raise US$10 billion from listings in three to five years.
Part of the proceeds that Egypt will reap will be used to narrow its budget deficit, one of the largest in the Middle East.
By Zainab Calcuttawala for Oilprice.com
More Top Reads From Oilprice.com:
Zainab Calcuttawala is an American journalist based in Morocco. She completed her undergraduate coursework at the University of Texas at Austin (Hook’em) and reports on…