Egyptian Gas Holding (Egas) has signed a deal with UK based BP under which the latter will supply 16 cargoes of liquefied natural gas (LNG).
Reuters quoted Khaled Abdel Badie as saying: "We signed with BP to supply 16 cargoes of liquefied natural gas, that will be received through 2015-2016."
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Initially, the deal was intended to be included in the $2.2bn tender awarded to BP, Trafigura, Vitol and Noble Group by the Egyptian government, which included provision for 70 LNG cargoes.
Recurring delays on BP’s part had, however, put the deal into doubts since Egypt was eager to ease its energy crisis.
BP was initially expected to deliver 21 cargoes, while Trafigura’s share was for 33 cargoes, Vitol’s nine and Noble Group’s seven.
Sources aware about the matter were cited by the news agency as saying that the number of shipments for BP was reduced.
BP was expected to deliver the first shipments from April.
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By GlobalDataBesides the 70 cargo deal, the Egyptian government had also signed separate deals with Algeria’s state-run Sonatrach and Gazprom’s trading arm have agreed to deliver six and 35 LNG cargoes, respectively.
Reduced LNG outputs and increasing demands have been forcing Egypt, a prior exporter, to import fuels in recent times.
Towards the end of 2014, BP had announced about its plans to invest over $12bn in Egypt over the following five years to double its gas supplies for the local market.
