Egypt opens tender to import fuel in July-Sept

June 01, 2014 - 1:28:22 am

CAIRO: Egypt has launched a tender to import hundreds of thousands of tonnes of petroleum products in the third quarter of 2014, an energy official said yesterday, as the country tries to stave off a summer energy crisis.

Egypt’s government wants to avoid major power blackouts during the months of increased consumption in the summer, when outages are worsened by a dilapidated grid and a wasteful subsidies system.

The tender comes in addition to supplies from Saudi Arabia, which will deliver energy products to Egypt in July and August.

An official from the Egyptian General Petroleum Corp (EGPC) said that Egypt launched a tender on Thursday to import 90,000 tonnes of diesel each in July and August, and 120,000 tonnes of gasoline and 500,000 tonnes of diesel in September.

The tender would remain open until the first week of June, the official said, declining to be named. Saudi Arabia would give Egypt about 240,000 tonnes of gasoline and 850,000 tonnes of diesel in July and August “as a gift”, he said.

Saudi Arabia, Kuwait and the United Arab Emirates (UAE) pledged more than $12bn in loans and donations.

The head of the EGPC said in May that Egypt would receive about $650m to $700m worth of petroleum aid per month in August, totalling to more than $3 billion from April to August.

Power cuts and long queues at petrol stations contributed to widespread discontent in the country. 

Raising energy prices could cause more unrest in a country where street protests helped bring down two presidents in three years. Reuters