The Egyptian Natural Gas Holding Company (EGAS) applied for the Gas Market Regulatory Authority to obtain two shipping and supply licenses of natural gas to the local market.
A source from the Gas Market Regulatory Authority said that the Egyptian Natural Gas Company (GASCO) applied for two transport and distribution licenses of natural gas. A committee was formed by the authority to investigate the recent applications.
He added that 14 Egyptian companies, working in the establishment of secondary gas networks, has applied for gas distribution licenses in the local market, with two more companies expected to apply for licenses in the next week.
The source pointed out that the Gas Market Regulatory Authority will not interfere in determining gas selling prices to the end consumer, and they are committed to the prices previously determined by the Egyptian Cabinet.
In accordance with the Law No. 196 of 2017 regulating the gas market, the Gas Market Regulatory Authority is entitled to determine the prices of gas in the local market, based on the supply and demand mechanism, in a step to gradually liberate the gas market.
The source added that the Gas Market Regulatory Authority has determined the licensing fees for transportation, shipping, distribution and supply of natural gas, in accordance with the executive regulations of Law No. 196.
The executive regulations of the law set the licensing fee for gas transport at 0. 057 cents/million British thermal units (B TU), shipping at 0. 031 cents/million B TU, distribution at 0. 023 cents/million B TU, and supply at 0. 008 cents/million BTU.
The source explained that the new license allows any entity to exercise any of the gas activities subject to the Gas Market Regulatory Authority.
Then another license shall be
issued for each activity separately after checking the applicant’s technical and financial suitability according to the requirements determined by the authority which set the rights and obligations of the licence.
The source said that the activities which need to be licenced are those related to the operation of gas networks and facilities, as well as gas shipping and supply.