Egypt agrees deal with BP for LNG supply

Egypt has agreed a liquefied natural (LNG) supply deal with British oil major BP through 2015 and 2016, but for less than first proposed, Egyptian officials and trade sources said.

BP will supply 16 cargoes under a deal with the state-run Egyptian Gas Holding Company, or EGAS, compared with the initially agreed 21 cargoes.

This deal was meant to form part of a major tender Egypt awarded in January to buy 70 LNG cargoes, worth about $2.2 billion, but recurring delays threw the deal with BP into doubt as Egypt scrambled to cover its energy needs.

"We signed with BP to supply 16 cargoes of liquefied natural gas, that will be received through 2015-2016," head of EGAS Khaled Abdel Badie told Reuters.

As part of the January tender, commodity trader Trafigura won the right to supply 33 cargoes, Vitol nine and Noble Group seven.