By Giwa SHILE
Egyptian Natural Gas Holding Company has awarded six of nine cargoes as part of a competitive tender to Switzerland-based traders Trafigura, Vitol and Gunvor, trade sources said on Wednesday.
Trafigura will supply three cargoes, Gunvor two and Vitol one, although there was some disagreement over the exact split.
Gunvor’s cargoes are likely sourced via a government-to-government deal between Egypt and LNG producer Trinidad, a separate trader said.
Trade sources said two early July cargoes were not awarded, likely due to unexpectedly high spot LNG prices and a lack of offers.
The ramp-up of Eni’s giant Zohr gas field is also rapidly cutting the country’s demand for LNG.
Eni aims to boost Zohr output to 1.75 billion cubic feet/day in August.
EGAS was not immediately available to comment.
Estimated prices for the deliveries were pegged at 14.5-16 per cent of a barrel of Brent crude oil, equivalent to upwards of 11 per million dollars British thermal units traders said.
