The agreement was initially intended to be part of the country’s $2.2bn tender awarded in January for 70 LNG cargoes.
However, the deal with BP was put into doubts due to persistent delays as Egypt restructured its plan to meet energy requirements.
As part of the tender, Trafigura, Vitol and Noble Group have secured rights to supply a combined 49 cargoes of LNG. BP was entailed to deliver the remaining 21 cargoes with the first shipments planned from April.
Sources familiar with the matter were quoted by Reuters as saying that the country, however, reduced the number of BP’s LNG cargoes shipments to 16 compared to previously planned 21 cargoes due to delays in signing the agreement.
Separately, Algeria’s state-run Sonatrach and Gazprom’s trading arm have agreed to deliver six and 35 cargoes of LNG to Egypt, respectively.
Last year, BP announced plans to invest over $12bn in Egypt in the next five years, to double its gas supplies to the local market.
Image: BP will supply 16 cargoes of LNG to Egypt. Photo: courtesy of BP p.l.c.
