Government to Charge Gas Companies for Using National Grid

Government to Charge Gas Companies for Using National Grid

Egypt’s Gas Regulatory Authority (GRA) has set a tariff of $0.38 per million British thermal units (mmBtu) for companies looking to transfer natural gas through the national grid, the authority announced on August 2.

The tariff will allow companies to use the national gas network for private imports.

The rate will be revised after an initial one-year trial period.

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 gas grid.

The license of each of these activities has its cost calculated per MMBtu, Enterprise reported. It costs $0.057 to transmit one MMBtu, while shipping will cost $0.031 per MMBtu. Distribution licenses and supply licenses will cost $0.023 and $0.008 per MMBtu respectively.

The GRA must process the requests within 10 working days of the application and the companies should submit any additional papers the GRA requires within the same timeframe. The GRA will then have 45 days to comment on the request. If approved, the fees must be paid within seven days of the approval date.

Permit requests must be processed within 10 working days of application and any additional documents required by the regulator must also be submitted within 10 working days. The regulator will then have 45 days to approve or deny the request and fees must be deposited within seven days of that date.

The GRA will be responsible for licensing along with monitor the companies to make sure that they are abiding with the terms and conditions of these licenses. Its mandate as outlined in the July 2017 Gas Market Law also includes amending and suspending licenses for gas activities.

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