State gas firm EGAS is seeking at least 17 LNG shipments in a tender, to be delivered over the next three months — its largest in years — Bloomberg reports, citing traders it says have knowledge of the matter.

The details: In the tender, which closes on 26 June, EGAS is looking to acquire seven shipments of LNG cargoes in July, six more in August, and four more in September, Reuters reports, citing unnamed trade sources.

But potential bidders look hesitant: Egypt is also seeking deferred payments of up to six months for the shipments, which could “narrow the list of bidders and increase premiums” amid high demand for the fuel in Asia, the trade sources said. Although Egypt has made a point of paying back its arrears to foreign oil companies after it floated the EGP in March, some traders told the newswire that they are concerned given the nation’s “credit risk and difficult economic situation.”

And we may have to pay a premium: We could be looking at a USD 1-2 premium per mmBtu on the Dutch TTF hub gas price — one of the main benchmarks for European gas prices — to secure all shipments, Reuters cited its sources as telling it. On top of this, “any longer-term payment terms would warrant an additional premium,” one source told the newswire.

There’s heavy competition for imports from the Atlantic: Demand from Asia, particularly from Japan, is especially high for Atlantic LNG volumes — which are expected to be the main source of Egypt’s supply of the fuel while the Bab Al Mandab strait remains inactive.

Remember: A fall in domestic production has pushed the country from being a net exporter to a net importer of LNG in recent months. The government has been ramping up imports in efforts to address a supply gap that has translated into extended power cuts and most recently had the government slashing gas supplies to fertilizer companies to cut supplies to feed power plants instead.

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