Egypt has announced that it has changed from a gas exporting to a gas importing country based on a decision issued by the Petroleum Minister that went into effect on 17th December.
According to the ministerial order, the Egyptian Natural Gas Holding Company would either import the gas itself from international markets or via contracting companies. The gas would be transferred via national networks with necessary approvals.
Mr Medhat Youssef Petroleum expert said that the decision was unprecedented, especially as Egypt would import gas from international companies in Qatar, not the Qatari government. The import price is expected to reach USD 14 per 1 million thermal units, whereas the government sells gas to factories for no more than USD 4.
Mr Youssef said that the Egyptian government exports gas to Jordan at USD 5.50 per one million units, while Qatar exports it at more than USD 9, arguing that Egypt administers its petroleum supply poorly and should reconsider prices.
Importing gas at international prices would affect industries such as cement and fertilizer production.
Mr Hany Suleiman former Petroleum Ministry deputy for gas affairs said that gas production in Egypt does not meet demands, referring to expectations that the deficit would reach 3.7 billion cubic feet by 2018.
Mr Suleiman said that daily consumption will double by the fiscal year 2014-2015 reaching 25 million cubic feet, compared to around 12 million cubic feet in 2011-2012.
