The new law regulating gas markets will produce a more flexible gas market and boost the Egyptian economy, predicts the Egyptian Minister of Petroleum and Mineral Resources, Tarek El Molla, Egypt Oil & Gas reports.

The law was authorized earlier this week by President Abd El Fattah El Sisi.

According to El Molla, the law will make it easier for Egypt to secure the natural gas it needs. It will gradually deregulate the Egyptian gas market, opening it up for private investment in trading, storing, selling, and distributing natural gas.

The government hopes to create a competitive gas market that will lead to efficient services and continuous development and upgrades.

Under the new law, private companies will pay a set fee for the use of public transit facilities and pipelines. Profits from these fees will be used to expand existing pipelines and to encourage investment in gas infrastructure and transportation networks.

The new law is central to Egypt’s strategy to become a regional energy-trading hub, El Molla noted, adding that it would also encourage industrial growth and investment.

According to the new gas law, Egypt will form an independent regulatory body to regulate and supervise the gas market and issue licenses for the importation, transportation, and sale of natural gas.