The Egyptian Natural Gas Holding Company (EGAS) has applied for shipping and supply licenses from the Gas Regulatory Authority (GRA) while the Egyptian Natural Gas Company (GASCO) has applied for transportation and distribution licenses, a source at the GRA told Al Borsa.
Fourteen Egyptian companies have submitted license requests to the GRA to perform various gas market activities. The regulatory body is expecting another two companies to submit their requests within the next week, the source added.
Earlier this month the GRA set the fees for the licenses that will allow companies to use the national gas grid. The license fee will depend on the activity and the amount of gas. Transmitting 1 million British thermal units (MMBtu) will cost $0.057, and shipping will cost $0.031 per MMBtu. Distribution and supply licenses will cost $0.023 and $0.008 per MMBtu respectively.
The GRA also set a tariff of $0.38 per MMBtu for companies looking to transfer natural gas through the national grid.
Egypt issued the executive regulations of the gas market liberalization law in February. The new law allows private market players to ship, transport, store, market, and trade natural gas using the national grid.