Thu. Jul 25th, 2024

Egypt is organizing tenders to purchase large quantities of gas this summer with the possibility of deferring payment for up to six months.

These new conditions make prices slightly higher, as Egypt is expected to pay more than the usual price to ensure its access to gas.

Sources in the Egyptian energy market indicate that Egypt will have to pay an additional premium on the price of gas, between one and two dollars per million British thermal units above the basic price, to secure the required quantities of gas.

Egypt expects to receive most of these shipments through the port of Ain Sokhna on the Red Sea, while some other shipments will be received at the port of Aqaba in Jordan.

Egypt faces economic challenges, including a shortage of hard currency and overdue debts to major companies, which makes the situation more difficult in light of these major tenders.

It is noteworthy that the decline in gas in Egypt is mainly due to problems related to water leakage in the giant Zohr field, but there is an effort to curb the decline in production in Zohr, in addition to implementing plans to drill several new wells in the field over the years 2024 and 2025, which will support a partial recovery in production Gas in Egypt in the near term.

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