Cabinet to set eligible consumers for natural gas sold by private-sector

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Mon, 09 Oct 2017 - 02:05 GMT

British Egyptian Business Association (BEBA) - CC

British Egyptian Business Association (BEBA) - CC

CAIRO – 9 October 2017: The private sector will not be allowed to reach all types of natural gas consumers after new law becomes effective, vice chairman of the Egyptian Natural Gas Holding Company (EGAS) Amira El Mazni said Monday.

Speaking at an event organized by the British Egyptian Business Association (BEBA) on the new gas market regulations that allow the private sector involvement in the market, Mazni said that there will be eligible consumers, such as power plants and heavy industries' factories.

"There will also be non-eligible consumers such as residential and commercial sectors," Mazni said, explaining that the cabinet of ministers still have to designate access to gas in details.

Issued by the Ministry of Petroleum in August, the new law will organize downstream gas, payments for outstanding debts and access to state infrastructure, Mazni said.

The law will work to end state monopoly and allow the private sector to enter gas supply, shipping, trade and distribution market, she added.

"But we don't want to see a monopoly from the private sector, that's why the government would continue overseeing the market through the authority," Mazni said.

The government said it aims to be a regional hub for liquefied natural gas (LNG) trade after a string of major discoveries, which are expected to help Egypt reach natural gas self-sufficiency by the end of 2018.

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