Wall Street Journal: Egypt presses oil companies for more time to pay for fuel
The Wall Street Journal reports that EGPC called a meeting on Wednesday to ask energy suppliers to give it six months instead of the usual three to pay for LNG, crude and petroleum product orders now in the pipeline.
The Journal says its unnamed source did not specify which suppliers attended the meeting; the paper notes BP, Vitol and Trafigura as among Egypt’s top suppliers. Wood Mackenzie LNG analyst Lucas Schmitt says concerns about credit risk could see Egypt could pay a premium compared to regional countries for upcoming orders.
“Egypt hasn’t yet procured LNG to meet its needs in 2017 and is expected to seek offers to deliver 120 cargoes, the largest-ever short-term tender, traders said.”