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Egypt has asked foreign companies to postpone the delivery of 10 liquefied natural gas (LNG) shipments contracted for the third quarter due to decline in consumption, said a government official.
"The decision to postpone the delivery of 10 gas shipments was prompted due to lower fuel consumption," the Saudi news website Asharq Business said, citing an unnamed Egyptian government official.
The third largest Arab economy, which has suffered from shrinking gas output over the past two years, had contracted for 62 LNG shipments at the beginning of the year. But decided to postpone the delivery of 10 shipments after gas consumption in power plants decreased by 15 percent in September, reaching 3.8 billion cubic feet per day, compared to 4.5 billion in August, driven by improved temperatures.
Egypt, a major consumer of gas and refined products, received 52 LNG shipments in the third quarter of this year at a cost of $54-57 million each, the report said, adding that 48 LNG shipments valued at $2.7 billion were received in the fourth quarter.
In June, a Reuters report said Egypt reached agreements with several energy firms and trading houses to buy 150 to 160 cargoes of LNG, as it increased purchases to meet power demands despite strained government finances, citing industry sources.
(Writing by N Saaed; Editing by Sona Nambiar)
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