Latest news with #MohamedEzz
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
Zawya
15-05-2025
- Business
- Zawya
Egypt buys 2.5mln tons of wheat from local farmers this season
CAIRO - Egypt, a top wheat importer, bought 2.5 million metric tons of wheat from local farmers so far this season, the cabinet said in a statement on Thursday. Procurement this season, which officially began in mid-April, has inched up compared to 2024. According to official documents seen by Reuters, the government has so far bought 2.55 million tons, up from 2.53 million tons in the same period last year, signaling an improvement in the harvest that was underperforming in the first few weeks. Despite a decrease in wheat-cultivated areas this season, the government expects to buy 4 million to 5 million tons of wheat from local farmers, having raised the procurement price by 10%, leaving it to import about 6 million tons to provide heavily subsidised bread for more than 69 million Egyptians. The government typically purchases 3.5 million tons from local farmers. Egypt's strategic reserve of the grain is estimated to last for 4-1/2 months, while vegetable oils were sufficient for 3.7 months as of May 7, the supply minister Sherif Farouk had said. (Reporting by Momen Saeed Atallah and Mohamed Ezz; Writing by Tala Ramadan; Editing by Aidan Lewis and Louise Heavens)
Yahoo
15-04-2025
- Yahoo
Egypt's tourism push puts pristine Red Sea beach at risk, say environmentalists
By Mohamed Ezz RAS HANKORAB (Reuters) - Ras Hankorab Beach, a pristine spot on southern Egypt's Red Sea coast with crystal clear waters and flat white sands, is the jewel of Egypt's Wadi el-Gemal National Park, home to one of the country's last untouched marine ecosystems. Today, the beach, a 90-minute drive from Marsa Alam international airport, and a four-hour drive from the huge, fast-growing resort of Hurghada, is closed off by a wooden fence, and campaigners are battling to halt its development with, according to the original plans, dozens of accommodation huts, a restaurant and a farm. Conservationists warn a fragile ecosystem supporting turtles, the coral reef, sea grasses and myriad species of fish is under threat and locals fear losing a precious natural resource forever. Fighting economic crisis, Egypt has been selling investment licenses in its national parks to developers in the hope of raising income. Projects vary in size and scope. Tourism is one of the most important pillars of the Egyptian economy. A recent UN Tourism report estimated annual tourism revenue at $14.1 billion in 2024, more than double Suez Canal revenues. With 17 million visitors in 2024, an annual increase of 17%, Egypt sees potential to boost numbers with more infrastructure, air connectivity and sustainable, coastal and desert-focused holidays. Turkey had 62 million tourists in 2024, Greece 35 million and Dubai 18.7 million. Environmentalists and local communities warn that even light construction on the beach would destroy one of Egypt's last untouched marine sanctuaries. Asmaa Ali, executive director of Ecoris, an Egyptian sustainable development and conservation group, said the national park and beach is one of the world's most important spots for biodiversity. "It has one of the most precious coral reefs, located at the reserve's beach. It also has sea turtles at risk of extinction, it has mangrove trees," she said. Sherif Baha el-Din, a co-founder of Wadi el-Gemal national park, said tourists seek unspoiled nature, not concrete resorts. "The more development on the Red Sea coast, the more important it becomes to leave this small part untouched," he said. "If we must develop, let's talk about where. But the best thing to build here is nothing at all." The Hurghada Environmental Protection and Conservation Association (HEPCA), an NGO, notes that the reef is so significant because it is one of the world's most tolerant of climate change, and has the potential to repopulate other reefs and even bring back some from extinction. REVENUE FROM NATIONAL PARKS Over the past decade, changes to the law have allowed spots within Egypt's national parks to be used for commercial projects. Environment Minister Yasmine Fouad said projects within protected areas including national parks surged from 10 in 2016 to 150 in 2024, with revenue increasing by 1,900%. Egypt's Environmental Affairs Agency initially offered the operation of Ras Hankorab for tourism use to investors, albeit under strict conditions. However, responsibility has now moved to a government fund, the minister said in a recent presentation on Wadi el-Gemal. She declined to comment further. Worried conservationist groups have filed an appeal with a state prosecutor, alleging development is not meeting protection laws and would damage a public resource. Locals say they have been sidelined. Many once made a living from low-key eco-tourism but are now effectively barred from the beach. "I used to take my kids there for free. Now, I have to pay 250 Egyptian pounds ($5) just to enter," said Mohamed Saleh, a tribal elder. "They didn't consult us. They didn't hire us. They just took over our land." Fouad and other Egyptian officials argue that eco-tourism and investment can coexist. She defended development of the beach and Wadi el-Gemal as a "controlled expansion," ensuring sustainability while attracting revenue. Her ministry will monitor and evaluate the proposed projects in sensitive areas, including Ras Hankorab, Ras Boghdady, and the world-renowned diving spot the Blue Hole, she said. However, critics see the ministry as lacking the resources for that. Egypt has lost environmental expertise due to low wages and limited resources, conservationists say. In 2007, Wadi el-Gemal had 20 wildlife specialists monitoring biodiversity. Today, there are only a handful, said an NGO member. The Environment Ministry and the State Information Service did not respond to a Reuters request for comment. "This [development] completely undermines the idea of eco-tourism. How does handing over protected land to private investors align with conservation?" said environmental lawyer Ahmed El-Seidi. "The state is obliged to protect its natural resources and to protect the rights of future generations in these resources." ($1 = 51 Egyptian pounds)
Yahoo
08-04-2025
- Business
- Yahoo
Brazil, Egypt and Singapore among potential winners from tariff onslaught
By Mohamed Ezz, Ahmed Eljechtimi and Xinghui Kok (Reuters) - Days after U.S. President Donald Trump's announcement of sweeping tariffs shocked multiple U.S. trading partners and global markets, a handful of countries are emerging as potential winners although the risk of a tariff-induced recession will limit the upside. With longtime allies and close U.S. trading partners including the European Union, Japan and South Korea among those hardest hit - with tariffs of 20% or more - rivals from Brazil to India and Turkey to Kenya see a silver lining. Brazil is among the economies that escaped with the lowest "reciprocal" U.S. tariff of 10%. In addition, the agricultural giant could benefit from China's retaliatory tariffs likely to hit U.S. farm exporters. The latest U.S. tariffs are due to come into effect on April 9. Brazil, as a net importer of goods from the United States, exemplifies the way some countries could take advantage of the trade war that Trump is waging primarily against China and other major exporters that run trade surpluses with the U.S. Morocco, Egypt, Turkey and Singapore, all of which have trade deficits with the U.S., could find an opportunity in the distress of those, like Bangladesh and Vietnam, which both run big surpluses and have been hit hard by Trump. While the latter two are grappling with expected tariffs of 37% and 46%, respectively, the former, like Brazil and most of its neighbours, will squeak by with 10% each - more of a slap on the wrist in the new Trump world order. "The US didn't impose tariffs on Egypt alone," said Magdy Tolba, chairman of Egyptian-Turkish joint venture T&C Garments. "It imposed much higher tariffs on other countries. This gives Egypt a very good opportunity to grow." Tolba listed China, Bangladesh and Vietnam as key competitors to Egypt in textiles. "The opportunity is in plain sight," he said. "We just need to grab it." Turkey, whose iron, steel and aluminium exports took a hit from earlier U.S. tariffs, now stands to benefit as other global traders endure even higher levies. Trade Minister Omer Bolat has called the tariffs on Turkey the "best of the worst" given the rates imposed on many other countries. NEGATIVE NOTICE Similarly, Morocco, which has a free trade agreement with the U.S., could emerge as a relative beneficiary of the pain of both the EU and erstwhile Asian powerhouses. "The tariff is an opportunity for Morocco to attract investments by foreign investors willing to export to the U.S., given the comparatively low 10% tariff," said one former government official, speaking on condition of anonymity. Still, the official and others noted that hazards loom, with the danger that big recent Chinese investments, including $6.5 billion from Gotion High Tech for what would be Africa's first gigafactory, could attract negative attention from Trump. Rachid Aourraz, an economist with the Moroccan Institute for Policy Analysis (MIPA), an independent think tank in Rabat, noted that the country's aerospace and fertiliser industries could still take a hit. "While the direct impact seems limited given that the U.S. is not a major market for Morocco's exports, the shockwaves created by the tariffs and the spectre of recession could impact Moroccan economic growth," he said. Kenya, with which the U.S. enjoys a trade surplus, may also see a mixed blessing from a relatively glancing tariff blow. Textile producers in particular expressed hope they could gain a comparative advantage against competitors in countries harder hit by tariffs. GREATER MISERY Similar concerns are playing out in Singapore, where the benchmark Straits Times Index on Monday slumped 7.5% in its largest fall since 2008 and extended its decline on Tuesday. While the city-state might benefit from some investment flows as manufacturers seek to diversify, they would still be subject to substantial manufacturing and local content rules, said OCBC economist Selena Ling. "The absolute story is there are no 'winners' if the US and/or global economy hits a hard stop or recession," she said. "It's all relative." Maybank economist Chua Hak Bin added: "Singapore cannot win in global trade war, given the heavy reliance on trade." India, despite a tariff of 26%, is still looking for opportunity in its Asian rivals' greater misery. According to an internal government assessment shared with Reuters, the sectors where India can gain market share in shipments to the U.S. include textiles, apparel and footwear. Soon after the tariff announcement, the Indian trade ministry said it was "studying the opportunities that may arise due to this new development in the US trade policy." India is also hoping to get a bigger share of Apple's iPhone manufacturing from China because of the tariff differential, though the 26% tariff could still make the phone substantially more expensive in the U.S. In South America, where exports remain focused on commodities from copper to grains, there are hopes the U.S. tariff turmoil could revive talks on a long-delayed trade deal between the four-member Mercosur bloc and the European Union. Brazil could be the top beneficiary of any such move, but even beyond that, trends during Trump's first term, when Brazilian soybeans and corn growers enjoyed bumper sales as China froze out U.S. farmers, could now be replicated. Elsewhere in Latin America, Mexico, which has previously been on the receiving end of Trump's wrath, has also emerged relatively unscathed, with most of its commerce shielded by the USMCA trade accord negotiated during Trump's first term, noted Graham Stock, a senior emerging market strategist at RBC BlueBay. "But Mexican assets are struggling more than others because Mexico is so exposed to the US economy, and at the end of the day the Trump trade policy is a huge act of self-harm to the U.S. economy," he added. (Writing By Christian Plumb; Additional reporting by Aftab Ahmed, Shivangi Acharya, Jonathan Spicer, Duncan Miriri and Marcela Ayres; Editing by Kate Mayberry) Sign in to access your portfolio
