Oil & Gas

Egypt considers deferring as many as 25 LNG shipments this year and many more in 2018

LNGThere are jitters in the LNG market over Egypt’s planned deferral of some 25 shipments of LNG this year and more in 2018, various sources tell Reuters. The nation’s appetite for LNG imports will decrease further once Egypt’s major gas developments come online, starting with the supergiant Zohr field this fall. Only a small portion of the deferrals have so far been agreed with Egypt’s LNG suppliers so far.

So far jitters over Egypt’s nascent programme of cargo deferments — a potentially bearish signal for global markets — have taken a back seat to more immediate developments, such as Kogas purchases, but Egypt could come to dominate thinking once the scale of its programme becomes clear.

Surging production from new gas fields is squeezing out demand for costly foreign imports, leading Egypt to consider deferring as many as 25 shipments this year and many more in 2018, according to various sources.

Yet only a small portion of deferrals have actually been agreed with Egypt’s LNG suppliers so far. Most of these are trading houses but some are state-backed energy companies.

(Source: Enterprise.press & Reuters)

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