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Tuesday, 11 October 2022

Government doubles gas prices for cement producers

Cement producers are going to be paying more than double what they used to for natural gas after the government issued a decree earlier this week enforcing a price hike of c.108%. Natural gas will now be sold to cement manufacturers at USD 12.00 per mmBtu, from USD 5.75 / mmBtu previously, according to the Official Gazette.

The decree also raises natgas prices for some other industries:

  • Brick kilns will be charged EGP 110.00 per mmBtu, up from EGP 73.00 / mmBtu;
  • Petrochemical companies producing ethane-propane blends will be charged according to a price formula that will be updated monthly by the state’s Egyptian General Petroleum Corporation (EGPC), with a set floor of USD 4.50 / mmBtu;
  • Other petrochems producers will see no change to their natural gas prices, which were set last October at USD 5.75 / mmBtu.

The exceptions: The decree does not apply to companies whose natural gas purchases have been priced into their supply contracts.

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