By Oleg Vukmanovic and Abdel Rahman Adel
MILAN/CAIRO, June 22 (Reuters) - Egypt has agreed aliquefied natural (LNG) supply deal with British oil major BP through 2015 and 2016, but for less than first proposed,Egyptian officials and trade sources said.
BP will supply 16 cargoes under a deal with the state-runEgyptian Gas Holding Company, or EGAS, compared with theinitially agreed 21 cargoes.
This deal was meant to form part of a major tender Egyptawarded in January to buy 70 LNG cargoes, worth about $2.2billion, but recurring delays threw the deal with BP into doubtas Egypt scrambled to cover its energy needs.
"We signed with BP to supply 16 cargoes of liquefied naturalgas, that will be received through 2015-2016," head of EGASKhaled Abdel Badie told Reuters.
As part of the January tender, commodity trader Trafigurawon the right to supply 33 cargoes, Vitol nine and Noble Group seven.
The remaining 21 cargoes were to be supplied by BP, with thefirst shipments scheduled to arrive from April. But delays tosigning a deal until recently has reduced the number ofdeliveries, sources with knowledge of the matter said.
BP declined to comment.
Egypt has emerged as a major new market for LNG just asdemand in the world's biggest consuming region Asia weakens,driving prices 60-percent lower and prompting traders to seekalternative opportunities.
Falling output and rising demand are transforming Egypt froman oil and gas exporter to an importer.
Alongside the current purchases, Egypt has also struck LNGimport deals with Algeria's state-run Sonatrach for six cargoesand Gazprom's trading arm for 35 cargoes.
(Editing by Louise Heavens)