Egypt Tenders to Buy Fuel Oil for Oct-Dec

Egypt’s state-owned oil company has launched a tender to import hundreds of thousands of tonnes of fuel oil for delivery between October and December, according to tender documents seen by Reuters.

Egyptian General Petroleum Corp (EGPC) is seeking nine cargoes of 180 CST fuel oil, each for 30,000-33,000 tonnes, for delivery to Alexandria port on a monthly basis, with three optional cargoes.

EGPC is also seeking five cargoes of 40,000-45,000 tonnes each, of a similar grade of fuel oil for delivery to Suez port and three optional cargoes.

Both tenders closed on Sept. 17 and are valid until Sept. 25, the documents showed.

Last week, Egypt said it would buy 65 percent of its oil product imports for the next year from the United Arab Emirates, in the latest Gulf lifeline to an economy rocked by three years of turmoil.

The deal covers gasoline, diesel, heavy fuel and liquefied petroleum gas (LPG) that is used in homes.

Egypt has struggled to curb its swelling budget deficit while meeting soaring energy demand, resulting in daily electricity cuts around the country of 86 million people.

Lines at petrol stations and a shortage of gas were among the main public grievances against former President Mohamed Morsi of the Muslim Brotherhood. Oil-producing Gulf countries have come to Egypt’s aid since the army, prompted by mass protests, ousted Morsi last year.

Egypt also introduced deep cuts to energy subsidies in July, which have resulted in price rises of more than 70 percent, as it seeks to curb public spending and fuel waste.

The United Arab Emirates, Saudi Arabia and Kuwait have together provided Egypt with billions of dollars in grants, loans and petroleum products since Morsi’s overthrow.

Source :Reuters