In the Mediterranean Sea, a giant tanker has been carrying an Egyptian liquefied gas shipment since last May 16 (2023), that is, 20 days ago, as the shipment left the liquefaction station in Damietta Governorate, on its way to the European market, through Turkey, But it stopped waiting for prices to rise in order to make additional profits, before the shipment reached its destination.
Gas industries expert at the Organization of Arab Petroleum Exporting Countries (OAPEC), Wael Hamed Abdel Moaty, said on his Twitter page that the shipment was on its way to Turkey, which is the main destination for Egyptian liquefied gas exports.
The giant tanker, which carries an Egyptian liquefied gas shipment, is approaching its 20th day, while it is standing in the Mediterranean Sea, waiting for prices to rise, to finally reach the Turkish market, which forced it to sail several times, according to satellite images. which was viewed by the specialized energy platform.
High value of shipments
OAPEC expert, Engineer Wael Hamed Abdel Moati, believes that the stopping of the tanker carrying an Egyptian liquefied gas cargo at sea is evidence of the attractiveness of the immediate market for gas in times of crisis, as the countries exporting these shipments achieve high revenues, after the value of the shipments themselves has increased.
However, Abdel Moaty explained at the same time that the spot market is volatile, and waiting may lead to losses, as prices are likely to decline sharply in the event of an abundance of supply or a decline in demand in imported markets, according to the tweet.
He added, “Therefore, long-term contracts linked to a stable price equation are the best option in the LNG trade, as through them stable and continuous revenues can be achieved from the proceeds of the sale of shipments, and they also avoid consumers from sudden fluctuations in prices.”
OAPEC was among the first to call for countries to sign long-term gas contracts, as it is the ideal way for new projects, as the LNG industry is an expensive industry, so long-term contracts guarantee the seller access to continuous cash flows.
On April 18 of this year (2022), the Secretary General of OAPEC, Eng. Jamal Al-Loughani, said, in an interview with the energy platform, that long-term contracts “guarantee the seller continuing to make investments in gas resources and cover costs, and at the same time guarantee the buyer protection from The price fluctuations experienced by the spot markets, while securing supplies.
Long-term LNG contracts topped the global scene again, with the escalation of energy crises and global market turmoil after the war in Ukraine, as long-term contracting activity linked to oil prices (Brent crude) recorded a strong start in 2023.
Contracts for the purchase of 13 million metric tons of liquefied gas were signed in a period of just over 4 months, extending from November 2022 to early March 2023, according to what was seen by the specialized energy platform.
Egyptian exports of liquefied gas
It is noteworthy that Egypt managed to maintain its exports of liquefied gas during the first quarter of this year 2023, at the previous levels recorded during the past year 2022, despite the decline in the production of some fields.
A recent report by OAPEC revealed that Egyptian liquefied gas exports were recorded during the first quarter of 2023, about 1.90 million tons, justifying maintaining the same previous levels with the increase in production levels after developing gas fields in the eastern Mediterranean region, and the quantities that Cairo receives from other fields in the region, according to agreements with companies. foreign.
The OAPEC report, issued on May 17, entitled “Developments of LNG and Hydrogen during the first quarter of 2023,” prepared by Eng. Wael Hamed Abdel Moaty, said that Egypt’s exports play an important role within its strategy aimed at becoming a regional hub for the trade and export of LNG.
Egypt can supply more than one shipment of liquefied gas per day, as it is the only country among the eastern Mediterranean countries that has liquefaction stations, with capacities exceeding 12 million tons annually, as its stations in Damietta and Idku are among the main pillars in the facilities and infrastructure for natural gas trade and circulation. .
It is noteworthy that the tanker carrying an Egyptian liquefied gas shipment, which has been standing at sea for about 20 days, left the gas liquefaction station in Damietta Governorate, according to information seen by the specialized energy platform.
The continent of Europe had acquired about 76% of Egypt’s exports of liquefied gas during the first quarter of this year 2023, while the Asian markets received the rest of the exports amounting to about 0.46 million tons, with a share of 24% of the total.
related topics..
Also read..
2023-06-04 14:03:35
#Egyptian #liquefied #gas #shipment #sea #days. #story #energy
