Egypt awards six LNG cargoes to Swiss traders via competitive tender
Egyptian Natural Gas Holding Co. (EGAS) has awarded six of the nine LNG cargoes it has put out to tender to Swiss traders Trafigura, Vitol, and Gunvor, Reuters reported on Wednesday.
Trafigura will supply three cargoes, while Gunvor will provide two and Vitol one, with the shipments all likely to be priced above $11/MMBtu.
Egypt buys six of nine LNG cargoes via competitive tender-trade sources
** Egyptian Natural Gas Holding Company has awarded six of nine cargoes as part of a competitive tender to Switzerland-based traders Trafigura, Vitol and Gunvor, trade sources said. ** Trafigura will supply three cargoes, Gunvor two and Vitol one, though there was some disagreement over the exact split. ** Gunvor’s cargoes are likely sourced via a government-to-government deal between Egypt and LNG producer Trinidad, a separate trader said. ** Trade sources said two early July cargoes were not awarded, likely due to unexpectedly high spot LNG prices and a lack of offers. The ramp-up of Eni’s giant Zohr gas field is also rapidly cutting the country’s demand for LNG. ** Eni aims to boost Zohr output to 1.75 billion cubic feet/day in August. ** EGAS was not immediately available to comment. ** Estimated prices for the deliveries were pegged at 14.5-16 percent of a barrel of Brent crude oil, equivalent to upwards of $11 per million British thermal units (mmBtu), traders said.