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Wednesday, December 19, 2012
Egypt to import Qatari gas at US$14 and sell it for $4 domestically and to Jordan for $5.50

Egypt officially becomes gas-importing country to meet demand
Al-Masry Al-Youm Wed, 19/12/2012 - 19:05
http://www.egyptindependent.com/news/egypt-officially-becomes-gas-importing-country-meet-demand

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 17 December.

The decision was published in the Official Gazette on Monday.

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.

Petroleum expert Medhat Youssef said 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 US$14 per 1
million thermal units, whereas the government sells gas to factories for no
more than $4.

The Egyptian government exports gas to Jordan at $5.50 per one million
units, while Qatar exports it at more than $9, Youssef said, 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.

Meanwhile, Hany Suleiman, former Petroleum Ministry deputy for gas affairs,
said gas production in Egypt does not meet demands, referring to
expectations that the deficit would reach 3.7 billion cubic feet by 2018.

Daily consumption, according to Suleiman, will double by the fiscal year
2014/2015 reaching 25 million cubic feet, compared to around 12 million
cubic feet in 2011/2012.

Importing gas requires infrastructure and facilities that would cost around
$600 million to develop.

Edited translation from Al-Masry Al-Youm

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