Egypt Fails to Secure April LNG Shipments

Egypt's state-owned EGAS has so far failed to fill a tender to buy two liquefied natural gas (LNG) shipments due in April, trade sources said.

EGAS launched a tender last week, open only to some of its existing suppliers, for the delivery of one cargo in April 1-7, and another in April 27-28.

Traders said the first delivery window was difficult to arrange given the short notice period.

For the late-April cargo, EGAS lined up commodity trader Trafigura as the supplier, but the deal ran into difficulties after EGAS tried to bring forward delivery to the middle of April, traders said.

As of Thursday, the slots have still not been filled. EGAS is understood to be still in talks with potential suppliers, they said.

Egypt became a major market for LNG shippers after the launch of two floating import terminals last year as the country looks to plug an energy shortage that has halted industrial production during summer months and caused rolling blackouts.

But a sharp decline in foreign currency receipts has hindered Egypt's ability to pay for commodities, including LNG, triggering greater caution among suppliers in their dealings with EGAS.

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