Egypt to Floats $3 bn LNG Purchase Tender in JUne

Egypt plans to issue tender in June to buy LNG shipments worth $3 billion for supply during 2016 and 2017, reported news agency Reuters Friday.

"We aim to issue a tender to issue LNG shipments during the first half of June... The tender aims to provide the needs for the new import terminal," Khalid Abdel-Badee, EGAS chairman, told the news agency.

Earlier this month, Cairo floated tender to lease a second LNG import terminal. Recently Hoegh Gallant floating storage and regasification unit (FSRU) from Norway's Hoegh LNG commenced commercial operations. The FSRU arrived in Egypt on the Gulf of Suez in early April. In November last year, Hoegh LNG finalised a five year deal with EGAS to supply FSRU by the end of first quarter of 2015.

Egypt has become a net importer of oil and gas on the back of lower production amid higher demand.

Abdel-Badee said that the amount of shipments have not yet been decided and no final date for procurement has been set, Reuters added.

Through the first LNG tender, Cairo secured LNG supplies from multiple entities.