Latest news with #MinistryofPetroleum
New Straits Times
25-05-2025
- Business
- New Straits Times
Egypt in talks to buy 40-60 LNG cargoes amid energy crunch, sources say
CAIRO/LONDON: Egypt is in talks with energy firms and trading houses to buy 40-60 cargoes of liquefied natural gas (LNG) amid a worsening energy crunch ahead of peak summer demand, three sources aware of the matter told Reuters. The country faces spending up to US$3 billion at current prices to secure the LNG, squeezing government coffers already under strain to keep the lights on amid falling gas production and a cost of living crisis. President Abdel Fattah al-Sisi on Wednesday directed the government to "preemptively take whatever needs necessary to ensure stable electricity flow," according to a statement. "The government is now in talks to import at least 40 LNG cargoes and around 1 million tons of fuel oil," an industry source familiar with the matter told Reuters. "Gas was the primary focus, given the more flexible payment options available compared to fuel oil, though the latter remains under consideration if LNG prices are unfavourable," the source added. In the past two years, Egypt endured rolling blackouts as natural gas supply fell short of demand. Egypt's own gas output in February hit its lowest level in nine years. The world's most populous Arab country returned to being a net importer of gas last year, buying dozens of cargoes and abandoning plans to become a supplier to Europe as its production tumbled. Egypt's hard currency crunch has delayed payments to international oil firms, curbing exploration and slowing oil and gas output. The country could now need up to 60 LNG cargoes to cover its 2025 needs, a second trading source said, adding over the long term that could rise as high as 150 cargoes. It is in talks with Qatar, Algeria, Saudi Aramco, and major global trading houses, the sources said. Egypt's Ministry of Petroleum, Qatar Energy, Saudi Aramco and the Algerian Ministry of Energy and Mining did not immediately respond to Reuters requests for comment. Egypt has bought 1.84 million tons (mt) of LNG this year, data from S&P Global Commodity Insights shows. That's almost 75 per cent of its total for 2024. ISRAELI GAS An additional problem has been lower supply from Israel's offshore Leviathan field which has been blamed on scheduled maintenance. That has forced Egypt to halt or reduce gas supplies to several fertilizer factories for at least 15 days. "My factory has come to a complete stop since Saturday. Others are working on partial capacity," the head of a fertilizers factory told Reuters, on the condition of anonymity. A prolonged halt could hit exports of fertilisers, a key source of foreign currency. Egypt relies heavily on imported Israeli gas, which accounts for 40-60 per cent of its total imported supply and about 15-20 per cent of its consumption, JODI data shows. Yet it faces the prospect of paying more for it, as two other industry sources told Reuters that Israel wants to raise its exported gas prices by 25 per cent. Prices for Israeli gas are linked to oil prices which have fallen, while prices of LNG are linked to other benchmarks such as the Japan Korea Marker (JKM) in Asia, gas prices at the Dutch TTF gas hub in Europe, or Henry Hub in the US. "Israel wants higher prices, because now they are so low at about US$6/mmBtu (million British thermal units) at today's Brent prices, while LNG price is closer to US$14/mmBtu. Israel was satisfied when the price was around US$7.50 mmBtu," one of the sources said. A spokesperson for the Israeli energy ministry told Reuters that prices in the gas sector are determined through business negotiations between companies. "The Government of Israel is not a party to this negotiation process. This is a business matter," she said.
See - Sada Elbalad
23-05-2025
- Business
- See - Sada Elbalad
Egypt Affirms Commitment to Energy Transition at BRICS Energy Ministers' Meeting
Taarek Refaat Egypt participated in the BRICS Energy Ministers' Meeting, held in Brasilia, Brazil, as part of its membership in the bloc and in line with the Ministry of Petroleum's strategy to enhance energy cooperation. Egypt was represented at the meeting by Alaa al Batal, First Undersecretary and Supervisor for Health, Occupational Safety and Environment (HSE), Energy Efficiency, and Climate Affairs. He praised the importance of the meeting and the member states' commitment to achieving sustainable development and global climate goals. Al Batal emphasized that this year witnessed the development of a roadmap for cooperation until 2030, achieving a balance between reliance on fossil fuels and the transition to sustainable energy systems. He also launched a dialogue between BRICS and the New Development Bank (NDB) to encourage investments in the energy transition and ensure energy access. He pointed out that the Egyptian Ministry of Petroleum has established six axes to guide its efforts in achieving sustainable transformation. The ministry aims to increase the percentage of electricity generated from renewable sources to 42% by 2030, as part of the updated energy strategy until 2040, while accelerating carbon reduction and diversifying sources in line with Egypt Vision 2030. He highlighted Egypt's expansion in sustainable fuel projects, such as the bioethanol project and Sustainable Aviation Fuel (SAF), in addition to its efforts to produce low-carbon hydrogen, having launched a national strategy and approved an incentive law, along with the Damietta project to produce green ammonia in partnership with (ECHEM) and (MOPCO). read more CBE: Deposits in Local Currency Hit EGP 5.25 Trillion Morocco Plans to Spend $1 Billion to Mitigate Drought Effect Gov't Approves Final Version of State Ownership Policy Document Egypt's Economy Expected to Grow 5% by the end of 2022/23- Minister Qatar Agrees to Supply Germany with LNG for 15 Years Business Oil Prices Descend amid Anticipation of Additional US Strategic Petroleum Reserves Business Suez Canal Records $704 Million, Historically Highest Monthly Revenue Business Egypt's Stock Exchange Earns EGP 4.9 Billion on Tuesday Business Wheat delivery season commences on April 15 News Egypt confirms denial of airspace access to US B-52 bombers News Ayat Khaddoura's Final Video Captures Bombardment of Beit Lahia News Australia Fines Telegram $600,000 Over Terrorism, Child Abuse Content Arts & Culture Nicole Kidman and Keith Urban's $4.7M LA Home Burglarized Sports Former Al Zamalek Player Ibrahim Shika Passes away after Long Battle with Cancer Sports Neymar Announced for Brazil's Preliminary List for 2026 FIFA World Cup Qualifiers News Prime Minister Moustafa Madbouly Inaugurates Two Indian Companies Arts & Culture New Archaeological Discovery from 26th Dynasty Uncovered in Karnak Temple Business Fear & Greed Index Plummets to Lowest Level Ever Recorded amid Global Trade War Arts & Culture Zahi Hawass: Claims of Columns Beneath the Pyramid of Khafre Are Lies
Yahoo
22-05-2025
- Business
- Yahoo
Exclusive-Egypt in talks to buy 40-60 LNG cargoes amid energy crunch, sources say
By Mohamed Ezz and Marwa Rashad CAIRO/LONDON (Reuters) - Egypt is in talks with energy firms and trading houses to buy 40-60 cargoes of liquefied natural gas (LNG) amid a worsening energy crunch ahead of peak summer demand, three sources aware of the matter told Reuters. The country faces spending up to $3 billion at current prices to secure the LNG, squeezing government coffers already under strain to keep the lights on amid falling gas production and a cost of living crisis. President Abdel Fattah al-Sisi on Wednesday directed the government to "preemptively take whatever needs necessary to ensure stable electricity flow," according to a statement. "The government is now in talks to import at least 40 LNG cargoes and around 1 million tons of fuel oil," an industry source familiar with the matter told Reuters. "Gas was the primary focus, given the more flexible payment options available compared to fuel oil, though the latter remains under consideration if LNG prices are unfavourable," the source added. In the past two years, Egypt endured rolling blackouts as natural gas supply fell short of demand. Egypt's own gas output in February hit its lowest level in nine years. The world's most populous Arab country returned to being a net importer of gas last year, buying dozens of cargoes and abandoning plans to become a supplier to Europe as its production tumbled. Egypt's hard currency crunch has delayed payments to international oil firms, curbing exploration and slowing oil and gas output. The country could now need up to 60 LNG cargoes to cover its 2025 needs, a second trading source said, adding over the long term that could rise as high as 150 cargoes. It is in talks with Qatar, Algeria, Saudi Aramco, and major global trading houses, the sources said. Egypt's Ministry of Petroleum, Qatar Energy, Saudi Aramco and the Algerian Ministry of Energy and Mining did not immediately respond to Reuters requests for comment. Egypt has bought 1.84 million tons (mt) of LNG this year, data from S&P Global Commodity Insights shows. That's almost 75% of its total for 2024. ISRAELI GAS An additional problem has been lower supply from Israel's offshore Leviathan field which has been blamed on scheduled maintenance. That has forced Egypt to halt or reduce gas supplies to several fertilizer factories for at least 15 days. "My factory has come to a complete stop since Saturday. Others are working on partial capacity," the head of a fertilizers factory told Reuters, on the condition of anonymity. A prolonged halt could hit exports of fertilisers, a key source of foreign currency. Egypt relies heavily on imported Israeli gas, which accounts for 40-60% of its total imported supply and about 15-20% of its consumption, JODI data shows. Yet it faces the prospect of paying more for it, as two other industry sources told Reuters that Israel wants to raise its exported gas prices by 25%. Prices for Israeli gas are linked to oil prices which have fallen, while prices of LNG are linked to other benchmarks such as the Japan Korea Marker (JKM) in Asia, gas prices at the Dutch TTF gas hub in Europe, or Henry Hub in the U.S. "Israel wants higher prices, because now they are so low at about $6/mmBtu (million British thermal units) at today's Brent prices, while LNG price is closer to $14/mmBtu. Israel was satisfied when the prices was around $7.50 mmBtu," one of the sources said. A spokesperson for the Israeli energy ministry told Reuters that prices in the gas sector are determined through business negotiations between companies. "The Government of Israel is not a party to this negotiation process. This is a business matter," she said. Egypt's Ministry of Petroleum did not immediately respond to a Reuters request for comment.
Yahoo
22-05-2025
- Business
- Yahoo
Exclusive-Egypt in talks to buy 40-60 LNG cargoes amid energy crunch, sources say
By Mohamed Ezz and Marwa Rashad CAIRO/LONDON (Reuters) - Egypt is in talks with energy firms and trading houses to buy 40-60 cargoes of liquefied natural gas (LNG) amid a worsening energy crunch ahead of peak summer demand, three sources aware of the matter told Reuters. The country faces spending up to $3 billion at current prices to secure the LNG, squeezing government coffers already under strain to keep the lights on amid falling gas production and a cost of living crisis. President Abdel Fattah al-Sisi on Wednesday directed the government to "preemptively take whatever needs necessary to ensure stable electricity flow," according to a statement. "The government is now in talks to import at least 40 LNG cargoes and around 1 million tons of fuel oil," an industry source familiar with the matter told Reuters. "Gas was the primary focus, given the more flexible payment options available compared to fuel oil, though the latter remains under consideration if LNG prices are unfavourable," the source added. In the past two years, Egypt endured rolling blackouts as natural gas supply fell short of demand. Egypt's own gas output in February hit its lowest level in nine years. The world's most populous Arab country returned to being a net importer of gas last year, buying dozens of cargoes and abandoning plans to become a supplier to Europe as its production tumbled. Egypt's hard currency crunch has delayed payments to international oil firms, curbing exploration and slowing oil and gas output. The country could now need up to 60 LNG cargoes to cover its 2025 needs, a second trading source said, adding over the long term that could rise as high as 150 cargoes. It is in talks with Qatar, Algeria, Saudi Aramco, and major global trading houses, the sources said. Egypt's Ministry of Petroleum, Qatar Energy, Saudi Aramco and the Algerian Ministry of Energy and Mining did not immediately respond to Reuters requests for comment. Egypt has bought 1.84 million tons (mt) of LNG this year, data from S&P Global Commodity Insights shows. That's almost 75% of its total for 2024. ISRAELI GAS An additional problem has been lower supply from Israel's offshore Leviathan field which has been blamed on scheduled maintenance. That has forced Egypt to halt or reduce gas supplies to several fertilizer factories for at least 15 days. "My factory has come to a complete stop since Saturday. Others are working on partial capacity," the head of a fertilizers factory told Reuters, on the condition of anonymity. A prolonged halt could hit exports of fertilisers, a key source of foreign currency. Egypt relies heavily on imported Israeli gas, which accounts for 40-60% of its total imported supply and about 15-20% of its consumption, JODI data shows. Yet it faces the prospect of paying more for it, as two other industry sources told Reuters that Israel wants to raise its exported gas prices by 25%. Prices for Israeli gas are linked to oil prices which have fallen, while prices of LNG are linked to other benchmarks such as the Japan Korea Marker (JKM) in Asia, gas prices at the Dutch TTF gas hub in Europe, or Henry Hub in the U.S. "Israel wants higher prices, because now they are so low at about $6/mmBtu (million British thermal units) at today's Brent prices, while LNG price is closer to $14/mmBtu. Israel was satisfied when the prices was around $7.50 mmBtu," one of the sources said. A spokesperson for the Israeli energy ministry told Reuters that prices in the gas sector are determined through business negotiations between companies. "The Government of Israel is not a party to this negotiation process. This is a business matter," she said. Egypt's Ministry of Petroleum did not immediately respond to a Reuters request for comment. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Egypt Today
11-05-2025
- Automotive
- Egypt Today
Egypt acknowledges bad gasoline samples at petrol stations, sets conditions for fuel pump compensation
CC/Rusty Clark CAIRO – 11 May 2025: The government on Sunday acknowledged spotting noncompliant gasoline at petrol stations in several areas across Egypt, including Cairo, setting conditions for affected citizens to get up to LE 2,000 in compensation. The Ministry of Petroleum said in a statement on Sunday that it will disburse an amount equivalent to the value of the approved invoice for gasoline pump replacement, up to a maximum of LE 2,000. Many citizens have already voiced concerns about the requirement to submit approved invoices, as they often have damaged parts replaced by mechanics informally, without formal documentation. The ministry's statement did not specify who was responsible for the substandard fuel or whether an investigation is underway to hold those responsible accountable. Following recent complaints about petrol quality harming car gas tanks, Egypt's Ministry of Supply is stepping up inspections at gas stations to ensure fuel availability, quality, and compliance with standards#Egypt #Africa #MENA — Egypt Today Magazine (@EgyptTodayMag) May 6, 2025 Over the past week, citizens have taken to social media to report car problems, including dashboard warning lights and various mechanical malfunctions. In the wake of the complaints, the ministry asserted last week that all fuel samples collected by "neutral" accredited inspectors from distribution and refining companies had thus far conformed to Egyptian standards. The statement noted that further testing is underway, collecting samples from petrol stations. Following that statement, Prime Minister Mostafa Madbouly said he had ordered the petroleum minister to investigate the issue, emphasizing transparency. Madbouly stated that penalties would be applied according to the law if misconduct is proven. In today's statement, the ministry reported receiving 870 complaints regarding fuel quality between May 4 and 9, primarily from Cairo and Giza. It also stated that five out of 807 samples taken for examination in various governorates were noncompliant. Journalist Mostafa Bakry has questioned the ministry's figures, suggesting that five noncompliant samples seem too low given the widespread public outcry. Conditions for Compensation The ministry stated that it will only contact complainants who reported the issue via the hotline (16528) or the government complaints system. The ministry outlined the conditions for compensation eligibility: complaints must have been submitted between May 4 and 10 and must concern the same period. Complainants must also submit documents proving car ownership besides an approved invoice for the fuel pump replacement. The ministry said it will pay for fuel pump replacements due to the noncompliant samples found at gas stations and the difficulty in determining the technical reasons for car pump failures, including gasoline quality, the vehicle's condition, and the pump's lifespan. Breaking Down Sampling During the specified week, Greater Cairo accounted for the majority of fuel quality complaints, with 429 in Cairo, 208 in Giza, and 59 in Qalyubia. The Nile Delta governorates of Sharqia, Menoufia, Dakahlia, and Ismailia reported 31, 18, 12, and 9 complaints, respectively. Alexandria, on the North Coast, reported 29 complaints, and Minya, in Upper Egypt, reported 12 complaints, according to the ministry's figures. The remaining governorates experienced few or no complaints, the statement added. The ministry asserted that sampling was conducted by teams from the ministry itself, the Ministry of Supply, and 'neutral' companies. Preventing Recurrence The ministry outlined enhanced measures to ensure fuel conformity and prevent future incidents, including requiring double testing of samples. For locally produced gasoline, refineries will be prohibited from releasing any product for consumption unless samples are analyzed in two different laboratories and the results match (instead of analysis in only one laboratory). For imported gasoline, samples will be taken under the supervision of independent companies and analyzed in three different laboratories to ensure accuracy (instead of one laboratory). Analyses will also be conducted before and after fuel release to ensure quality throughout the supply chain. Independent companies will be commissioned to conduct the analyses to ensure impartiality. Punishing Negligence While stating that inspection and monitoring activities will continue, the ministry affirmed its commitment to cooperating with relevant authorities to hold accountable anyone found to be negligent. The issue follows a recent increase in fuel prices, reaching up to 14.5 percent depending on the grade. This significant rise has caused public discontent, adding to the burden of previous fuel price increases in recent years. The government has cited the increasing burden on the state budget due to heavy fuel subsidies, with plans to completely eliminate these subsidies by the end of 2025.
