Egyptian Natural Gas Holding Company (EGAS) began with payments to LNG suppliers under the extended 90-day payment terms.
EGAS sought an extension of the payment terms in December last year amidst reports that the state-owned company struggled to pay for LNG cargoes it received, within the agreed 15-day period.
Reuters reported on Monday, citing trade sources, that Egypt, which imports up to eight cargoes each month failed to make payments since December, accumulating a debt towards to suppliers of around US$1 billion.
A report in January, claimed that due to the late payments the British Sapphire LNG carrier carrying a BP cargo was diverted to Brazil.
However, EGAS head, Khaled Abdel Badie told that the cargo was postponed for the country’s peak season, denying payment issues.
In his latest response to Reuters, he said that EGAS made all payments due on LNG deliveries, stressing that the company is in line with the extended payment term of 90 days.
BP, as well as Trafigura that delivers two to three cargoes of LNG each month to Egypt’s Ain Sokhna declined to comment on the payments.
LNG World News Staff