EGAS struggling to close LNG tender

By Curious

The Egyptian Natural Gas Holding Company (EGAS) has reportedly failed to secure two cargoes for delivery in April.

The tender launched during last week was open to EGAS’ existing suppliers, however, delivery windows of April 1-7 for the first cargo and April 27-28 were difficult to arrange due to a short period notice, Reuters reported.

EGAS struggling to close LNG tender

Image: Egyptian Natural Gas Holding Company 

EGAS picked the Swiss trading house Trafigura for the late April delivery window, however, the Egyptian state-owned company tried to bring the delivery to mid-April which put the deal at risk.

Neither of the two delivery slots has been filled as of Thursday, and EGAS is still in talks with potential suppliers over the two cargoes, according to the report.

EGAS recently started paying its suppliers after foreign currency receipts decline put the state-owned company in difficulty which forced it to seek an extension of the 15-day payment period.

However, it is believed that suppliers have become cautious when dealing with EGAS, which could be a potential reason why no supplier has been picked for the tender yet.

Source: lngworldnews