A source at EGAS informed Al-Borsa that the dues owed to the gas holding company reached EGP 4b with 60% of this sum coming from the government sector alone.
The source added that the process for rescheduling the payments of these debts was now in order. The National Cement Company, for instance, owed EGP 970m, paying back EGP 120m so far. The rest will be paid back in installments of EGP 50m.
The source explained that the cabinet’s decision concerning debt payment stipulated that the value owed is based on quantities of gas actually supplied, not the original contracted quantities. The current period began in January.
The source also confirmed that the gas supply would be cut off from any company that refused to pay its dues or have them rescheduled, and the company might resort to court proceedings over amounts owed or penalties due.
The source also expected that the debt problem would continue to be a priority over the next three months, especially given that the gas supply allocated to the manufacturing sector would become more regular in October once LNG shipments begin arriving.