Egypt to Reduce LNG Cargoes for Sale as Gas Prices Plummet
- The country is targeting long-term LNG sales at about $5/MBtu
- Egypt offered 80 LNG cargoes in 2019, which will fall in 2020
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Egypt is planning to reduce the number of spot liquefied natural gas cargoes it offers and to negotiate long-term sales deals with customers instead, because of plummeting prices.
The country will target a price of $5 per million British thermal units for long-term gas sales deals and the government is already in talks with international partners to achieve this, Egypt’s oil minister Tarek el-Molla said in an interview Tuesday on the sidelines of the World Economic Forum’s 50th annual meeting in Davos. The plan is for the deals to last for about one year to 18 months, after which time they’ll be renewed.