Egypt delays LNG, mazut shipments to Q1 2025 amid lower domestic demand
Updated 11/19/2024 9:04:00 AM
Arab Finance: The Egyptian Ministry of Petroleum and Mineral Resources has postponed the delivery of several liquefied natural gas (LNG) and mazut shipments contracted from international suppliers, an unnamed government official told Al Arabiya Business.
Initially scheduled for the fourth quarter (Q4) of 2024, the shipments will now be received during Q1 2025, the official said.
The decision, made in coordination with suppliers, aligns with a decrease in fuel demand from the Ministry of Electricity.
Originally, the ministry had forecast significant fuel needs for Q4 2024.
However, improved weather conditions have reduced the quantities required to operate traditional power stations, prompting the Ministry of Petroleum to defer some shipments while honoring contractual terms.
The official emphasized that postponing shipments helps the government lower its monthly fuel import bill, a priority amid rising financial pressures.
Despite the delays, Egypt continues to meet its financial obligations to foreign partners, maintaining strong trade relations and supplier confidence.
The Ministry of Petroleum is now assessing market needs for Q1 2025 to finalize the number of shipments required.
Following these evaluations and the conclusion of postponement negotiations, a new gas import tender for January to March 2025 will be announced.
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