The Egyptian government is in negotiations with the states, that are involved in a joint-cooperation agreement with Egypt and own LNG companies, to supply Egypt’s LNG requirements for two years. The LNG supplying contracts that the government is seeking will be subject to renewal, according to Daily News Egypt.
The discussions are ongoing with Russia’s Rosneft and Gazprom, Alegeria’s Sonatrach, China’s PetroChina, and another Omani company.
With the help of Egypt’s International Cooperation Ministry, the Ministry of Petroleum has decided to target the countries that share joint-cooperation agreements with Egypt, in order to avoid paying the merchants’ commission expenses – as singing the contracts will only involve the two governments and will not require any merchants’ brokerage – thus earn the gas shipments for lower prices.
Trafigura, Shell, Rosneft, and PetroChina won the tender to supply 11 gas shipments to Egypt, which was launched in June and is expected to continue until the end of August.