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GASREG verifies 33 gas companies’ compliance with license terms - Daily News Egypt

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GASREG verifies 33 gas companies’ compliance with license terms

Companies started to apply for license renewal for a year: source

The Gas Regulatory Authority (GASREG) verified the commitment of 33 companies operating in shipping, supplying, and distributing natural gas locally, to the conditions and obligations stipulated in their licenses.

A source in the authority told Daily News Egypt that a GASREG committee had inspected companies’ work sites to ensure their compliance with the standards established in their licenses.

He explained that the licensed activities are related to operating gas networks and facilities as well as commercial activities such as gas shipment and supply. The first stage includes licensing activities for a gas transmission system operator, a license for a gas distribution system operator, a gas shipping license, and a gas supply license.

The source said that the authority assessed the fees for issuing licenses for natural gas transportation, shipping, distribution, and supply activities, according to the executive regulations of the Gas Market Regulation Law issued in August 2017.

He pointed out that companies started to apply for renewing their licenses that they obtained last year.

The source emphasised that the GASREG had no hand in adjusting the sale price to the final consumer, and that it is committed to the pricing approved by the cabinet.

The executive regulations of the law set the license issuance fee for transport activity 0.057 cents / one million British thermal units (MBTU), for shipping activity 0.031 cents / MBTU, distribution activity 0.023 cents / MBTU, and supply activity 0.008 cents / MBTU.

The source said that the license is the legal document issued by the GASREG, according to which any entity can exercise any of the gas market activities.

The license for each activity is issued after verifying the technical and financial adequacy of the applicant according to the requirements set by the authority, and specifying the rights and obligations of the licensee.

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