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Sunday, 17 March 2019

Egypt tenders four LNG cargoes, marking return to gas market

We are once again a natural gas exporter: The Egyptian Natural Gas Holding Company (EGAS) has offered a tender to sell four LNG cargoes for April loading with bids due on Monday, Bloomberg reported. Egypt is also offering four cargoes for loading in May and three for June. Reuters also has the story.

The tender marks Egypt’s return to the export market after increasing demand and depleting production turned the country into a net importer in 2015. Major discoveries in the Mediterranean, including Eni’s Zohr field, helped Egypt achieve self-sufficiency and now return to exports.

However, the return comes a time when prices are low and demand is slowing. “The speed and scale of which Egypt has turned from importer to notable exporter is likely to further loosen the already wide supply / demand balance,” Nick Campbell, a director at industry consultant Inspired Energy Plc, told Bloomberg. That will exacerbate “the lower demand environment with warmer winters in Europe and the Far East leaving storage levels relatively full.”

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