Egypt’s EGAS seeks 45 cargoes

Egypt’s state-owned gas company EGAS has opened a tender for 45 cargoes, according to market sources.

The timeframe spans between October 2015 and 6 December 2016, a source active in the tender told ICIS. The tender is on Brent-linked basis and succesfull participants will be required to place a guarantee bond with EGAS, which will be released upon delivery of the cargoes.

The cargoes will be mainly used for the second floating storage and regasification unit (FSRU) at Ain-Sukhna on Egypt’s Red Sea Coast.

The tender is expected to attract plenty of interest from traders as Egypt is viewed as a premium market at the moment.

“There is likely to be a lot of optimization around this position. Even parties that don’t participate directly will have to fill in the gaps,” one participant said.

One of the parties active in last tender held by EGAS was able to secure a price equivalent of 14.3% indexation to Brent, which is seen as a premium level on the current spot markets. The current list of participants is understood to include Switzerland-based energy traders Trafigura, Vitol and Gunvor, as well as a Japanese trading house and Glencore. roman.kazmin@icis.com