US economy slows to 1.6% in Q1 of '24 – BEA    EMX appoints Al-Jarawi as deputy chairman    Mexico's inflation exceeds expectations in 1st half of April    GAFI empowers entrepreneurs, startups in collaboration with African Development Bank    Egyptian exporters advocate for two-year tax exemption    Egyptian Prime Minister follows up on efforts to increase strategic reserves of essential commodities    Italy hits Amazon with a €10m fine over anti-competitive practices    Environment Ministry, Haretna Foundation sign protocol for sustainable development    After 200 days of war, our resolve stands unyielding, akin to might of mountains: Abu Ubaida    World Bank pauses $150m funding for Tanzanian tourism project    China's '40 coal cutback falls short, threatens climate    Swiss freeze on Russian assets dwindles to $6.36b in '23    Amir Karara reflects on 'Beit Al-Rifai' success, aspires for future collaborations    Ministers of Health, Education launch 'Partnership for Healthy Cities' initiative in schools    Egyptian President and Spanish PM discuss Middle East tensions, bilateral relations in phone call    Amstone Egypt unveils groundbreaking "Hydra B5" Patrol Boat, bolstering domestic defence production    Climate change risks 70% of global workforce – ILO    Health Ministry, EADP establish cooperation protocol for African initiatives    Prime Minister Madbouly reviews cooperation with South Sudan    Ramses II statue head returns to Egypt after repatriation from Switzerland    Egypt retains top spot in CFA's MENA Research Challenge    Egyptian public, private sectors off on Apr 25 marking Sinai Liberation    EU pledges €3.5b for oceans, environment    Egypt forms supreme committee to revive historic Ahl Al-Bayt Trail    Debt swaps could unlock $100b for climate action    Acts of goodness: Transforming companies, people, communities    President Al-Sisi embarks on new term with pledge for prosperity, democratic evolution    Amal Al Ghad Magazine congratulates President Sisi on new office term    Egypt starts construction of groundwater drinking water stations in South Sudan    Egyptian, Japanese Judo communities celebrate new coach at Tokyo's Embassy in Cairo    Uppingham Cairo and Rafa Nadal Academy Unite to Elevate Sports Education in Egypt with the Introduction of the "Rafa Nadal Tennis Program"    Financial literacy becomes extremely important – EGX official    Euro area annual inflation up to 2.9% – Eurostat    BYD، Brazil's Sigma Lithium JV likely    UNESCO celebrates World Arabic Language Day    Motaz Azaiza mural in Manchester tribute to Palestinian journalists    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Government jeopardising EGPC finances: Petroleum ministry source
Mohamed Adel Published in Daily News Egypt on 25 - 10 - 2014

The government is jeopardising the financial situation of the Egyptian General Petroleum Corporation (EGPC) and its ability to borrow to repay part of debts due to foreign partners, as a result of EGPC's being charged with paying the value of liquefied natural gas (LNG) supplies that the Ministry of Petroleum is negotiating to import, according to an official from the ministry.
The official said that that the Ministry of Finance refused to provide the liquidity necessary to import LNG, despite the EGP 5bn allocated in the fiscal year (FY) 2014/2015 budget for such imports.
He said that the ministry is negotiating the importation of gas shipments to power plants, costing approximately EGP 1bn per month, which would require them to open a letter of credit with a bank to repay the value of shipments directly.
He added that EGPC revenues are not large enough to bear the expenses of importing liquefied natural gas under its quest for uniformity in paying dues to foreign partners, while also bearing the expenses of supplying shipments of petroleum products.
The official asked how the Ministry of Petroleum would be able borrow in order to repay part of debts due to foreign partners while opening a letter credit to pay the value of the LNG shipments.
The official stressed that the finance ministry placed its functional burden on the EGPC for paying fuel subsidies in all their forms as well as dues owed to foreign partners, presenting an issue since 2009 due to the ministry's failure to pay in full.
He pointed out that Ministry of Finance is working to filter fuel subsidies allocations from EGPC revenues in its final budget as a result of increased petroleum indebtedness.
The EGPC's inability to repay its debts regularly is caused by the spending of EGPC's internal revenues on fuel imports due to the inability of the Ministry of Finance to provide the necessary liquidity.
Officials from the petroleum sector refused to comment on how the value of LNG shipments would be paid. The shipments and renting an LNG carrier are currently being negotiated as well as petroleum companies' ability to regularly repay foreign parents as previously announced.

Clic here to read the story from its source.