Egypt Secures Libya Oil Imports After War Cuts Off Kuwaiti Flows

Article content(Bloomberg) — Egypt is set to import at least 1 million barrels a month of Libyan oil to compensate for a halt in Kuwaiti crude supplies caused by the effective closure of the Strait of Hormuz.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentThe agreement follows a request by the state-run Egyptian General Petroleum Corp. to Libya’s National Oil Corp., according to people with knowledge of the situation. Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentOPEC member Libya will now send two cargoes totaling 1.2 million barrels each month to its eastern neighbor, they said, asking not to be identified because the information isn’t public.Article contentArticle contentThe arrangement come as Egypt, the Middle East’s most populous nation and a major commodities importer, grapples with higher energy bills stemming from the US-Israeli war with Iran, now in its fifth week.Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentOfficials from the NOC and EGPC didn’t answer phone calls seeking comment.Article contentEgyptian refineries are partly dependent on crude from Kuwait, importing between 1 and 2 million barrels a month of its oil, in addition to about 1 million barrels from Saudi Aramco. Article contentAfter the war erupted on Feb. 28, the Persian Gulf’s oil producers were forced to cut output as storage tanks filled rapidly. Kuwait reduced its oil production and refining when shipping through the Strait of Hormuz slowed, and the Kuwait Petroleum Corp. declared force majeure on crude sales. Article contentForce majeure in commercial contracts refers to an exceptional event beyond a company’s control that makes it impossible or temporarily unfeasible to fulfill contractual obligations. In such cases, the company may suspend deliveries or adjust schedules without incurring penalties.Article contentEgypt consumes approximately 12 million tons of diesel and about 6.7 million tons of gasoline annually. It’s also a net importer of natural gas and is moving to ration consumption, this week enforcing earlier closing times for cafes and shops.Article contentTrending Trans Mountain pipeline expected to run nearly full in April, bucking seasonal trends, as war continues Energy Quebec demands Air Canada’s CEO resignation in 92 to 0 vote Airlines Iran oil revenue soars as it's the only exporter out of Hormuz Oil & Gas Why waiting to lock in your variable rate often backfires Mortgages Meet the Canadian e-bike maker who is redefining the factory floor Electric Vehicles Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. Trans Mountain pipeline expected to run nearly full in April, bucking seasonal trends, as war continues Energy Quebec demands Air Canada’s CEO resignation in 92 to 0 vote Airlines Iran oil revenue soars as it's the only exporter out of Hormuz Oil & Gas Why waiting to lock in your variable rate often backfires Mortgages Meet the Canadian e-bike maker who is redefining the factory floor Electric Vehicles