To offset the mounting shortage of butane gas, Egypt's General Petroleum Corporation is mulling whether to import the natural resource from Iran and Algeria, informed sources said.
The corporation is examining an offer from Sonatrach, an Algerian firm, to provide 40,000 tons of butane gas in June, the sources told Al-Masry Al-Youm.
The offer quotes present rates, US$1100 per ton, the sources said. The sources described the price as relatively higher than Saudi imports, which have lower transportation costs.
The corporation is also eyeing Iran for imports, but the sources said that negotiations with Iran would be conducted through a mediator because direct contact with Iranian government firms is difficult considering the absence of diplomatic relations between Iran and Egypt. They said also that US sanctions may hinder financial dealings with Iran.
The sources explained that Iran is not a major exporter of butane gas, but the corporation is seeking to diversify its sources of imports to secure better prices and is planning to secure 2.9 million tons by the new fiscal year, which starts in July.
Egypt’s local butane production covers 50 percent of consumers’ needs. The remaining 50 percent is covered by imports.
Translated from the Arabic Edition
