Egypt has reportedly accumulated around US$350 million of debt towards the LNG suppliers due to a foreign currency crisis and low oil prices.
Reuters reports, citing sources, that Egypt has struggled to pay for the liquefied natural gas cargoes within the agreed 15-day period following the unloading and asked the suppliers to extend the term to 90 days.
The state’s tourism sector weakened following the Russian plane crash in October, resulting in depleting foreign currency reserves and Central Bank’s decision not to extend further help to cover the costs of LNG imports are major factors for the payment term extension request.
Some suppliers have denied reports claiming that there was a strong possibility that a number of suppliers would not allow for the payment terms extension cancelling their contracts.
According to the report, Egypt is currently importing six to eight cargoes per month priced at around US$20 to US$25 million per cargo.
LNG World News Staff