EGAS Launched LNG Tender

EGAS Launched LNG Tender

The Egyptian Natural Gas Holding Company (EGAS) launched the world’s biggest tender for liquefied natural gas (LNG) during October, with a price tag of several billion dollars. EGAS released the tender’s documents in a bid to secure 96 LNG shipments over 2017-2018, reported Reuters. Additional 12 optional cargoes were included in the tender, which EGAS may decide not to award.

Under the latest tender terms, LNG suppliers may have to wait as long as six months after delivery to get paid. Thereafter payments terms were extended from the previous 90-day period to 120-180 days.

This tender came as Egypt pushes for increased gas outputs. Egypt Oil&Gas reported that the country’s Minister of Petroleum and Mineral Resources, Tarek El Molla, stated that Egypt’s production of natural gas would increase to 5bcf/d in the 2017/2018 fiscal year, from it’s current level of 4.35bcf/d. He added that the country would still increase gas imports to cover growing demand that has reached 5.2bcf/d. El Molla declared that EGAS would work on growing gas imports by holding an international tender for 48 to 56 LNG shipments.

Sarah Samir 3420 Posts

Sarah has been writing in the oil and gas field for 8 years. She has a Bachelor Degree in English Literature. She has three years of experience in the banking sector.

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