The Egyptian General Petroleum Corp (EGPC) awarded the country’s second largest LNG tender on 12th September.
Prices ranged from between TTF plus $1.5 per MMBtu and $1.6 per MMBtu, according to sources talking with S&P Global Platts.
The price is inclusive of extended payment terms for the tender, allowing for a 180 day delay in payment, which accounted for around 50-60 cents per MMBtu of the total cost.
Without the extended payment term cost, the price was reported to be between TTF plus 90 cents per MMBtu and $1.2 per MMBtu.
For standard 3.5 TBtu cargoes, the purchase would cost Egypt around $45 mill per cargo, or $907 mill in total, sources said.
Most of the cargoes were awarded on a floating price basis on TTF given the competitive nature of the offered premiums.
More than 15 companies offered for the cargoes, added the source.
Aramco, Glencore, Gunvor, Total, BP, Hartree, BB Energy, and Shell were awarded the cargoes, according to market participants.
Aramco was said to have won the most cargoes, around six or seven, with the rest winning between one and three.
The tender covered 20 cargoes, split across three months - seven deliveries in October, six in November, and seven in December this year.
Of these, 17 are scheduled for delivery to the FSRU ‘Hoegh Galleon’ moored at the Ain Sukhna import terminal, while the remaining three will be delivered to Jordan's Aqaba terminal, with one cargo to be delivered each month.
Last June, another 20 cargo tender was awarded at between TTF plus $1.60 per MMBtu and $2 per MMBtu, Platts said.
Platts, part of Commodity Insights, assessed the JKM/NWE spread for October to December deliveries between $1.279 per MMBtu and $1.745 per MMBtu on 12th September.
This could have served as the ceiling for the EGPC tender award prices without accounting for the extended payment terms, several sources said.
Platts also assessed the October DES East Mediterranean LNG at $11.584 per MMBtu on the same day, which reflected a 38 cents per MMBtu premium over the Northwest European LNG market and a 17.5 cents per MMBtu premium over the Dutch TTF, Platts reported.
