The EGPC is developing plans to connect homes in all provinces, delivering gas to 1.6m residential units, beginning with the slum areas during 2016, a source at EGPC told Egypt Oil and Gas.

The source explained that focus will be on housing units in Upper Egypt and some of the slum areas in Cairo and Giza, which will coincide with the government’s plan to deliver natural gas to about 2.6m housing units by 2017.

The plan is part of an effort to reduce the LPG import bill and improve services to low income Egyptians.  He added that delivering natural gas to the aforementioned number of residential units will save the state EGP 1.8b on butane subsidies from the state budget, with subsidies currently standing at EGP 19b. This plan will also help in solving the recurring butane crisis that takes place in winter, easing the burden on warehouses and distribution operations to the citizens.