Egypt in gas price talks with foreign firms
Cairo, December 12, 2013
Egypt is still in talks with foreign energy companies to change the amount the government pays them for natural gas produced in the country and there is no timeline for when negotiations will finish, an oil ministry spokesman said.
Officials have said they hope revised prices will encourage investment and future production in Egypt, notably offshore where costs are high, to avoid shortages on the domestic market.
Oil Minister Sherif Ismail was quoted as saying, about three weeks ago, that state-run Egyptian Natural Gas Holding Company (EGAS) would sign seven new contracts and modify seven others within two weeks.
Ministry spokesman Hamdy Mohamed Abdel Aziz said on Wednesday talks with foreign companies are being conducted by EGAS and by Egyptian General Petroleum Corporation, which is also a state-run firm.
Egypt pays offshore gas producers on average around $2-$3 per million British thermal units, according to industry estimates. Comparable payments for gas in Britain are currently above $10 and for Asian supply above $17.-Reuters