The Gas Regulatory Authority (GASREG) has licensed 18 private and public companies for shipping, supplying, and distributing natural gas in the local market.
Two of the licenses were granted to the Egyptian Natural Gas Holding Company (EGAS) for supplying and shipping the natural gas in the local market, a source of GASREG told the Daily News Egypt. While the Egyptian Natural Gas Company (GASCO) has obtained three licenses for transmitting, distributing, and supplying the natural gas, the source added.
A total of 16 Egyptian companies engaged in launching gas sub-networks and gas delivery to consumers have obtained licenses to distribute gas in the local market, according to the GASREG source.
“The activities that require licensing concern operating gas networks and facilities, as well as trading activities, such as shipping and supplying,” the source said, explaining that the first phase includes licensing the gas transmission operator, distributer, shipping operator, and supplier.
The source asserted that GASREG has nothing to do with determining the gas prices for consumers, it is only committed to the pricelist determined by the government.
GASREG has valued the fees of licensing for transmitting, shipping, distributing, and supplying the natural gas according to the Gas Market Activities Regulation Law issued in August 2017.
The regulatory law has determined fees of issuing license for transmission at 0.057 piasters per British thermal unit (BTU), shipping at 0.031 piasters/BTU, distribution at 0.023 piasters/BTU, and supplying at 0.008 piasters/BTU.
The license is a legal authorisation of the GASREG to allow any entity to practice any activity in gas local market. Every license is being issued after scrutinising their legal and technical commitment, according to GASREG requirements, which determines the rights and obligations of the license.
The law no. 196 for 2017 to regulate gas market stipulates that GASREG has the right to determine gas prices, according to supply and demand, to gradually liberate the gas market through the coordination with the petroleum sector entities.