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Thursday, 9 June 2016

Gov’t backtracks on reducing price of gas supplied to steel factories, EGAS will stop supplying heavy industry in August

The government is not going to reduce the price of natural gas supplied to steel factories to USD 4.5 mmBtu from USD 7 mmBtu, claiming producers had “failed to meet set conditions,” a senior official tells Al Shorouk. Those conditions included reducing steel prices by EGP 500-800 per ton and operating at full capacity, he said. Meanwhile, Al Borsa is reporting that the Electricity Ministry has requested 3.9 bcf per day of natural gas from EGAS for August, representing more than 100% of domestic production. EGAS has said it will stop supplying heavy industry in August as demand from power stations peaks and ensure imports of 1.3 bcf per day through the FSRU program (about 1.1 bcf/d) and from Jordan (0.2 bcf/d) continue uninterrupted.

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