Egyptian Media reported the the Egyptian Natural Gas Holding Company (EGAS) will set a preliminary price of $0.4 per 1mbtu for the use the Egypt’s national gas distributor grid by private companies, citing a source at EGAS.
The source added that in order to set the final price, EGAS contracted with a specialized international company to act as an independent firm to decide on the suitable price for using the national grid.
The Executive Board of the Egyptian General Petroleum Corporation (EGPC), along with EGAS’ Board of Directors, had approved allowing private sector companies to directly import gas and to use the national gas grid in return for a transmission tariff, given that they EGAS’s operational and commercial standards.
In December 2016, the Egyptian government had proposed a new draft law to the parliament to open natural gas sector to private investors. The proposed draft law would enable the private sector to contribute in natural gas sector’s activities including shipping, distribution, sale, and marketing. The draft law further proposed establishing a new regulatory body that would supervise the liberalization of the Egyptian natural gas sector. This regulatory body should be responsible for granting any required investment licenses and obliged to prevent any monopolies.