EGAS issued its directives governing the private sector importation of liquefied gas, which include providing data on the importer (the applicant), the source of imported gas, potential gas consumers and technical specifications about the type of gas.

A senior EGAS official noted that while the door to importing gas had been opened from early July, they had yet to receive a single request from the private sector.

He clarified that to import LNG all that had to be done was to withdraw an application form, from the EGAS headquarters, and satisfy all the conditions outlined to determine the general framework of the import process.

This includes the applicant’s commitment to obtaining the required approvals, and to carry all relevant expenses of “customs, trading, transportation and delivery”, and any other expenses owed to the concerned authorities. The imported gas, moreover, must meet the required technical specifications of the national grid; that the oxygen ratio does not exceed 0.1% and carbon dioxide 3%. Hydrogen sulfide must also not exceed 4 parts per million and the gas must not contain any condensate at zero degrees Celsius, among other specifications.

The EGAS official predicted, however, that no private sector company would import gas given the low price of fuel they could get from the state, priced at an average of $6 per million BTUs, compared with a cost exceeding $10 for the importer.

Source: Al-Borsa