Egypt Independent: Business-Main news http://www.egyptindependent.com//enhome_channel/Economy/rss.xml en Egypt to launch up to $3bn LNG purchase tender http://www.egyptindependent.com//node/2450592 <img src="http://www.egyptindependent.com///sites/default/files/imagecache/media_thumbnail/photo/2015/01/15/499612/a_ship_passes_a_petro-industrial_complex_in_kawasaki_near_tokyo.jpg" alt="" title="" class="imagecache imagecache-media_thumbnail" width="152" height="114" /><p>Egypt is set to launch what will be a highly sought after tender in early June to buy up to $3 billion of liquefied natural gas (LNG) over 2016 and 2017, senior state officials and trade sources said.<br /><br />Egypt has emerged as a major new market for LNG as it looks to ease its worst energy crunch in decades. Falling output and rising demand have transformed it from an oil and gas exporter to net importer.<br /><br />This year it secured $2.2 billion worth of LNG largely from European traders in its first-ever tender to supply a newly installed import terminal moored on its Red Sea coast.<br /><br />A new tender to purchase additional cargoes will go towards supplying Egypt&#39;s second planned floating import terminal, known as a Floating Storage and Regasification Unit (FSRU).<br /><br />Work on securing that terminal is ongoing and any delays could alter the tender launch date.<br /><br />The Chairman of The Egyptian Gas Holding Company, or EGAS, Khaled Abdel Badie told Reuters that it will close the bidding for the new FSRU by the end of this month.<br /><br />&quot;We aim at issuing a tender to import LNG shipments during the first half of June...which is aimed at meeting the needs of the second FSRU,&quot; Badie said.<br /><br />Two traders with knowledge of the matter said that Egypt will tender to purchase 96 LNG cargoes for delivery over the 2016/2017 period.<br /><br />&quot;That&#39;s the intention although the supply might start before, around Q4 2015,&quot; one of the traders said.<br /><br />Badie said EGAS has not yet decided on the number of required LNG shipments nor has it set a firm date for the start of deliveries.<br /><br />Global LNG suppliers, already stung by weak demand and spot prices at four-year lows, are seizing on any new business opportunities.<br /><br />A sharp year-long decline in spot LNG prices has seen new buyers launch major procurement tenders, including Jordan which this week came out with a supply tender for as many as 36 cargoes over 2016/2017.<br /><br />The switch marks a reversal from when LNG was seen as near unaffordable for less developed economies.<br /><br />The winners of Egypt&#39;s previous tender were Trafigura , Vitol and Noble Group.<br /><br />EGAS also signed deals to import 35 LNG cargoes from Gazprom Marketing &amp; Trading and six from Algeria&#39;s Sonatrach.<br /><br />It was also nearing a deal to import 21 cargoes from BP.&nbsp;</p> Fri, 22 May 2015 13:03:00 +0000 Reuters 2450592 at http://www.egyptindependent.com sites/default/files/photo/2015/01/15/499612/a_ship_passes_a_petro-industrial_complex_in_kawasaki_near_tokyo.jpg Egypt's market gains $3 bn in one week, EGX30 jumps 8.3% as govt suspends capital gains tax http://www.egyptindependent.com//node/2450584 <img src="http://www.egyptindependent.com///sites/default/files/imagecache/media_thumbnail/photo/2015/02/20/499612/cairo_stock.jpg" alt="" title="" class="imagecache imagecache-media_thumbnail" width="152" height="114" /><p>Egypt&#39;s market main index EGX30&nbsp;jumped 8.25 percent in this week, after the government had put on hold a new tax on capital gains from stock market operations for two years on Monday.<o:p></o:p></p><p>Meanwhile, the EGX70 index and the EGX100 surged 9.3 percent&nbsp;and 8.86 percent respectively, Egyptian Exchange data showed..<o:p></o:p></p><p>EGX market capital gained LE22.29 billion (US$2.9 billion) to hit LE504.56 billion compared to LE 482.2 billion last week.<o:p></o:p></p><p>The Egyptian Cabinet put the 10 percent tax on capital gains on hold for two years, but will keep a 10 percent tax on stock dividends<o:p></o:p></p> Fri, 22 May 2015 12:15:00 +0000 Egypt Independent 2450584 at http://www.egyptindependent.com sites/default/files/photo/2015/02/20/499612/cairo_stock.jpg Construction of KIMA 2 factory stopped due to rising energy prices http://www.egyptindependent.com//node/2450569 <img src="http://www.egyptindependent.com///sites/default/files/imagecache/media_thumbnail/photo/2015/01/15/484151/dsc_0607.jpg" alt="" title="" class="imagecache imagecache-media_thumbnail" width="152" height="114" /><div>The construction works at the KIMA 2 factory in Aswan, which was estimated to cost LE5 billion, and the development of the old factory were both stopped when the two Italian companies and Orascom, who are doing the civil and electromechanical infrastructure, requested to renegotiate the terms of the agreement related to energy in light of the recent rise in prices.</div><div>&nbsp;</div><div>Sources expected that the issue would be resolved in the coming few days.</div><div>&nbsp;</div><div>However, Reda al-Adl, Chairman of the Holding Company for Chemical Industries that owns the factories, said he had not heard of the problem.</div><div>&nbsp;</div><div>An official at KIMA said that there has been a shortage of gas, and that the management will send a memorandum to the chairman of the Holding Company and the Minister of Investment to discuss the situation with the Minister of Petroleum</div><div>&nbsp;</div><div>He added that the banks suspended the loan that was allocated to the project until the problem is resolved.</div><div>&nbsp;</div><div>&nbsp;</div><div><i>Edited translation from Al-Masry Al-Youm</i></div><div>&nbsp;</div> Fri, 22 May 2015 11:43:00 +0000 Al-Masry Al-Youm 2450569 at http://www.egyptindependent.com sites/default/files/photo/2015/01/15/484151/dsc_0607.jpg World Bank provides $5 million grant to eliminate bureaucracy http://www.egyptindependent.com//node/2450548 <img src="http://www.egyptindependent.com///sites/default/files/imagecache/media_thumbnail/photo/2015/05/21/1755/abdel_nour_meets_world_bank_delegation.jpg" alt="" title="" class="imagecache imagecache-media_thumbnail" width="152" height="114" /><div>Trade and Industry Minister Mounir Fakhry Abdel Nour said the World Bank has agreed to a grant of $5 million to provide technical support for the Industrial Development Authority, the Investment Authority and the Egyptian Initiative to Reform the Business Climate (IRADA) so as to eliminate the bureaucracy in licensing, land allocation and the laws governing these services, which most investors complain about.</div><div>&nbsp;</div><div>Many economists have complained about the red tape and bureaucratic hurdles many investors and entrepreneurs in Egypt must overcome.</div> Thu, 21 May 2015 15:43:00 +0000 Egypt Independent 2450548 at http://www.egyptindependent.com sites/default/files/photo/2015/05/21/1755/abdel_nour_meets_world_bank_delegation.jpg