The Clap:
One of Egypt’s top fertilizer players — Sidi Kerir Petrochemicals (Sidpec) — has once again opened the doors to their plants, gradually beginning production after shuttering up for the second time this month following a shortage in gas feeds that saw other firms including Abu Qir Fertilizers, Mopco, and Kima to halt output.
Losses:
Reports yesterday circulated that the halt in operations for the companies came at a collective daily price tag of EGP 187 million, with Abu Qir bearing the brunt and shouldering EGP 65.54 million in losses, while Mopco recorded EGP 58.8 million, SIDPEC coming third at EGP 42.12 million, and KIMA at EGP 18.66 million.
Market reaction to SIDPEC’s plant reactivation:
The firm saw its share value rise 1.76% at market close yesterday.
Egypt has fully awarded 20 cargoes in its biggest LNG tender in years:
This adds three more cargoes to the previously mentioned 17 LNG shipments in a bid to meet surging local demand, Reuters reported.
Bids for the tender — granted at a premium of USD 1.60-1.90 to the standard Dutch TTF hub gas price — were received from over 15 major LNG players, and all cargoes were awarded with a 180-day deferred payment term.
Remember:
The import strategy — expected to average around USD 120 million a month for every three shipments — follows implementation of daily power cuts in a bid to save as much USD 300 million per month.
But time to find alternative sources as LNG shortages become the norm:
To adapt to the new reality, Abu Qir Fertilizers’ board yesterday approved a project to utilize partial hydrogen instead of natural gas, and has also green light establishment of a new solar plant with a 2.5 MW capacity.
