Cairo – Mubasher: The Gas Regulatory Authority (GRA) said it has set a tariff for companies planning to transfer natural gas through Egypt’s national gas grid at $0.38 per million British thermal units (mmBtu).
The tariff will enable firms to use the national gas network for private imports, Egypt Oil and Gas Newspaper reported.
The rate of the tariff will be revised after the initial trial period, GRA added, pointing out that the rate is “for the first year only”
Egypt’s new gas market liberalising law issued in February allows private market players to ship, transport, store, market, and trade natural gas using the national gas grid.
Each of the aforementioned activities has to be licensed at a cost calculated per MMBtu.
“It costs $0.057 to license transmitting one MMBtu, while licensing shipping a MMBtu will cost $0.031. The distribution license will cost $0.023 per MMBtu and supply license will cost $0.008 per MMBtu,” according to Enterprise.
The GRA will carry out licensing along with monitoring the companies to make sure that they are abiding with the terms and conditions of these licenses.
