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Another LNG tender soon?

Another LNG tender in the works

Egypt reportedly plans to issue a tender to buy up to 20 cargoes of liquefied natural gas (LNG) to cover demand in the first quarter of 2025, three government sources told Reuters on Monday. The government has bought up to 50 cargoes since the start of the year to meet local demand.

Shipments coming soon:

The Egyptian government is expecting to receive between 3 and 4 more shipments of liquefied gas in Ain Sokhna during the next two weeks, and one shipment in the regasification ship anchored in Aqaba Port, Al Arabiya writes.

Remember:

Last September, Egypt awarded a tender to purchase 20 shipments of liquefied natural gas to cover winter demand.

And big plans to up local production:

The Egyptian government is looking to up gas production by 30% from current daily rates to reach 6 billion by the end of next year, a government source told Asharq earlier this month.

This comes as the country wrestles with LNG shortages after becoming a net importer.

Egypt’s demand for the resource totals some 6.2 billion cubic feet a day, while it only produces about 4.2 billion.

A lot of agreements in the works:

Last month, the Managing Director of the Egyptian Natural Gas Holding Company noted that 11 new agreements were signed with international companies for natural gas exploration, production, and development during FY 2023-24 with a minimum total investment of USD 925 million.

British Oil giant BP reportedly plans to pump USD 400 million during the current fiscal year to drill two new wells in its North Alexandria concession. The wells would add a combined daily 400 mn cubic feet of gas to its output.

And earlier this month, American oil giant Chevron said it will invest USD 150 million to drill an exploratory well — dubbed “Singer” —- in the Mediterranean Sea next month as part of its plan to expand its natural gas output in Egypt, a government official told Asharq.

In other news, Egypt is dialing back its renewables target to focus on gas:

Egypt’s Petroleum Minister Karim Badawi announced on Sunday that the country has lowered its renewable energy generation target for 2040 to 40% from the initial goal of 58%, highlighting the ongoing importance of natural gas to its energy demands.

Raya plans to build a new factory with proceeds from its planned deal with Helios

Raya Holding CEO Ahmed Khalil told Al Arabiya yesterday that his company will allocate half of Helios Investment Partners’ USD 40 million offer to acquire a 49% stake in its subsidiary “Raya Foods” toward establishing a new factory. The new factory will focus on producing freeze-dried fruits and vegetables.

All part of plans to up production

Raya Foods aims to boost exports and foreign currency revenues by expanding production capacity from 50,000 tons to become the country’s leading frozen produce exporter, the company said earlier this week.

According to Khalil, the company will likely establish a new factory in Sadat City, which will focus more on exports by utilizing freeze drying technology.

In other news from Raya:

Raya Distribution, a subsidiary of Raya Holding, has signed a partnership agreement with Italian small appliance manufacturer De’Longhi Group to provide new products in the Egyptian market.

What else is clapping?

The Central Bank of Egypt will issue treasury bills in local currency on Thursday and Sunday worth EGP 100 billion on behalf of the Ministry of Finance. This is aimed at providing financing for various ministries and other public entities as the government looks to bridge its budget deficit, which exceeds EGP 1.2 trillion.
Oriental Weavers yesterday dispelled rumors that it has received an offer for the purchase of a significant portion of its shares. The company raised its net profits to EGP 1.47 billion during the first half of the year, compared to a net profit of EGP 733.39 million during the same period in 2023.