According to Reuters, EGAS has made payments to LNG suppliers for the first time since the payment terms for deliveries were extended in December 2015. The payment terms were extended from the original 15 days to 90 days because of Egypt’s foreign currency crisis.
Reuters reports that, although Khaled Abdel Badie – the head of state-owned EGAS – said that the company had made all payments due for LNG shipments, he did not clarify if these were the first payments made this year. He said: “We agreed with the companies to paying dues owed to them over a period of 90 days, and we are committed to this payment process.”
US$1 billion is now owed by Egypt to LNG suppliers according to market participants, and the extended payment terms will mean an increased risk profile for Egypt’s LNG arrangements going forward.
Edited from various sources by David Rowlands