Egypt Seeking 315,000 T Gasoline For Q4 –Traders

Egypt’s state oil firm EGPC has issued a tender to import up to 315,000 tonnes of gasoline into Suez and Alexandria between October and December, traders said on Tuesday.

EGPC is seeking five 30,000-35,000 tonne cargoes of 95 RON gasoline to be delivered into the Red Sea port of Suez and four same sized cargoes into the Mediterranean port of Alexandria.

The tender, which opened on Monday, is due to close on Oct. 1, with bids valid until Oct. 9.

Economic turmoil since a popular uprising unseated Hosni Mubarak last year has stretched Egypt’s finances and inflated the premiums that the state petroleum company has to pay for fuel.

“The interest is there but the question is would EGPC be interested to award at the (price) levels they are receiving?” one trader planning to participate in the tender said.

Because of fears over payments, Egypt is only an attractive market for fuel traders if it will pay high premiums for the fuel, he added.

Some tenders had been left unawarded while in some cases EGPC ended up buying much less than it tendered for. Industry sources say the government owes foreign energy producers at least $3 billion.

Azeri oil firm SOCAR won the previous EGPC gasoline tender where it originally sought seven cargoes but ended up buying four, with two being delivered into Suez at a premium of around $53 a tonne above Mediterranean quotes and the other two into Alexandria with premiums between $33-41 a tonne over Med quotes.

EGPC also has an outstanding tender for 18 cargoes of gasoil. Traders said Vitol, Trafigura and Mercuria have been the front runners for Suez cargoes but they predict EGPC contracting for fewer cargoes.

Egypt is a significant gas producer, with much of the output consumed locally, and a net importer of oil.

Reuters