Arab Finance: The Egyptian Natural Gas Holding Company (EGAS) has launched a tender to purchase 17 LNG cargoes for delivery this summer, with deferred payment terms of up to six months, trading sources told Reuters.

The tender closes on June 26th, with seven cargoes set for delivery in July, six in August, and four in September on an ex-ship (DES) basis, the sources added.

The deferred payment terms are expected to narrow the list of bidders and increase premiums amid high competing demand from Asia, according to market sources.

To receive the requested volumes, Egypt might pay more than the usual $1 - $2 per million British thermal units (mmBtu) premium over the Dutch TTF hub gas price.

Moreover, the sources said that the Hoegh Galleon floating storage and regasification unit (FSRU), which recently arrived at Ain Sokhna port, is expected to handle 12 of the 17 cargoes. The remaining five cargoes will be received at the Aqaba port in Jordan.

On May 2^nd, EGAS signed a contract with Norway's Höegh LNG to rent the Höegh Galleon floating unit for LNG.

In May, Egypt’s daily consumption of natural gas scaled up by around 300 million cubic feet daily, reaching 6.1 billion cubic feet.

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