Thirteen vessels loaded with fuel shipments have been held outside the Alexandria port for several days as the Egyptian General Petroleum Corporation (EGPC) has failed to deliver the cost of the shipments, sources said.
Banks have not provided letters of credit (L/Cs) guaranteeing the payment of the shipment as the EGPC has failed to provide the funds required to issue the L/Cs, according to a source at Alexandria port.
The EGPC pays approximately $8,000 per day in waiting fees , according to sources from the Alexandria Port Authority and the EGPC.
Three other ships laden with petroleum materials are being unloaded at Alexandria port, which is running at full capacity, the source said.
The petroleum authority has signed additional shipments of fuel oil contracts, anticipating an increase in the fuel consumption of power stations. However, this financial liquidity was not provided to pay the value of the shipments, an official from the EGPC said.
The official confirmed that the stalled shipments in Alexandria port are awaiting the issuing of L/Cs to be allowed to unload cargo at the port.
The chairman of the EGPC was not available for comment.
According to the official, the signed import contracts for petroleum product shipments include fines imposed on the EGPC for the benefit of companies due to the delay in unloading shipments and non-payments, which amount to roughly $60,000 per day for each vessel.
Egypt has signed an agreement with Saudi Arabia to supply Egypt’s fuel requirements for five years, along with payment facilities that are necessary to import fuel, until it overcomes the dollar liquidity crisis.
Minister of International Cooperation Sahar Nasr signed an agreement to finance the supply of Egypt’s petroleum derivative requirements for a period of five years. The agreement was signed with the Saudi Fund for Development, the Egyptian General Petroleum Authority, and Saudi Aramco, during the fifth meeting of the Egyptian Saudi Coordinating Council, which took place in the Saudi capital Riyadh last week.
