y Oleg Vukmanovic and Sarah McFarlane Jan 27 (Reuters) – European commodity traders won the lion’s share of a closely-watched tender to supply Egypt with $2.2 billion worth of liquefied natural gas, as they work to expand into a business typically dominated by the oil majors. Vitol, Noble Group and Trafigura will supply most of the LNG, with oil major BP covering the remainder, traders with knowledge of the matter said on Tuesday. The global market for the fuel was otherwise marked by receding demand, oversupply and plunging prices. LNG-AS Trading companies are gaining a foothold in global gas trade, at times by working with oil majors especially in countries carrying credit and payment risks, while an emerging glut of the fuel also creates more space for them to operate. “The traders are developing an increasing role for themselves in the LNG market including taking on the risk of supplying LNG to new, less creditworthy buyers who some of the more traditional players are more reluctant to deal with directly,” Andy Flower, independent LNG consultant said. “Their ability to make commitments to these buyers without necessarily having fixed the supply is a sign of the increasing flexibility of the LNG … continue reading
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Source: CTRM Center