EXCLUSIVE-Egypt in talks with foreign companies over long-term LNG deal, sources say

Reuters11-20 22:20

By Mohamed Ezz and Marwa Rashad

CAIRO/LONDON, Nov 20 (Reuters) - Egypt is in talks with U.S. companies and other foreign companies to purchase long-term volumes of liquefied natural gas $(LNG)$, in a shift from reliance on the more costly spot market to meet power demand amid a steep decline in domestic gas output, three sources said.

"The ministry (of Petroleum) is seeking three or four years of supply to hedge from sudden price increases. It is also seeking to include a flexibility clause as the government hopes it could maybe find gas sooner or doesn't need that much gas," the first industry source said.

Cairo is in talks mainly with U.S. companies and portfolio players who have U.S. offtake, given their flexibility compared with other producers, the other two trading sources said.

(Reporting by Mohamed Ezz in Cairo, Marwa Rashad and Ron Bousso in London; Editing by Jane Merriman)

((marwa.rashad@thomsonreuters.com; +447823669044; Reuters Messaging: marwa.rashad.thomsonreuters.com@reuters.net))

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment