* First payments since terms extended to 90 days-sources
* Traders estimate EGAS owes $1 billion to LNG suppliers
By Sarah McFarlane and Oleg Vukmanovic
LONDON/MILAN, March 7 (Reuters) - Egypt's state-owned EGAShas made its first payments to liquefied natural gas (LNG)suppliers since payment terms for deliveries were extended,trade sources said.
Egypt imports around six to eight cargoes of LNG per monthand traders said that until last week EGAS had not paidsuppliers since December when it extended payment terms to 90days from the usual 15 days, due to the country's foreigncurrency crisis.
EGAS head Khaled Abdel Badie told Reuters his company hasmade all payments that were due on LNG shipments but did notspecify whether these were the first payments this year.
"We agreed with the companies to paying dues owed to themover a period of 90 days, and we are committed to this paymentprocess," he said.
Egypt became a major market for LNG shippers after thelaunch of two floating import terminals last year as the countrylooks to plug an energy shortage that has halted industrialproduction during summer months and caused rolling blackouts.
A sharper decline in foreign currency receipts since theRussian airliner disaster in October, which has hit tourism,combined with low oil prices limiting aid from Gulf allies, hashindered Egypt's ability to pay for commodities.
Market participants said Egypt now owes LNG suppliers up to$1 billion and the extended payment terms have increased thecountry's risk profile for future LNG deals.
In January British oil major BP diverted a LNG tankerto Brazil rather than discharging in Egypt, a move which traderssaid was related to payment delays from EGAS, but BP and EGASsaid the cargo was postponed.
BP declined to comment on whether they had received anypayments from EGAS subsequent to the extended payment terms.
"We remain comfortable with our contractual arrangementswith EGAS under which we continue to deliver," a spokeswoman forBP said, adding that contract details were confidential.
Commodities trade house Trafigura, the largestsupplier to EGAS, also declined to comment on whether they hadbeen paid.
"We consider ourselves a long-term partner of Egypt. We haveconfidence in our client's commitment and continue to delivertwo to three cargoes of LNG per month to Ain Sokhna," aspokeswoman for Trafigura said.
Other LNG suppliers to Egypt include Shell, Gas Natural,Vitol, EDF Trading, PetroChina and Noble.
(Additional reporting by Abdel Rahman Adel and Eric Knecht inCairo, editing by David Evans)