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Wednesday, 19 June 2019

EGAS refuses again to cut natural gas prices for heavy consumption factories

The Egyptian Natural Gas Holding Company has once again refused another push for cutting natural gas prices for steel and ceramics factories, local press reported, citing an unnamed EGAS officials. EGAS said the current prices are appropriate for different industries. It said factories, who receive about 2.4 bcf/day of natural gas, are working at almost full capacity. Parliamentary sources quoted by local press said the government will continue to turn down requests in the meantime until it finishes studying the issue. Industry has been pressuring the government for years to cut natural gas prices saying that it is affecting their product prices and thus sales which is causing them to work under their full production capacity. The government had promised in 2016 to cut gas prices to USD 4.5 mmBtu from USD 7 mmBtu but didn’t deliver on it, with EGAS describing the decision at the time as a “waste”. Trade and Industry Minister Amr Nassar has said in March that it would currently be difficult to reduce gas prices for steel factories to USD 5 per MMBtu from USD 7.

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