All current natural gas consumers in Egypt are considered as non eligible consumers who buy natural gas according to the regulations and prices approved and announced by the Prime Minister. This should be the case till the issuance and approval of eligible consumer’ standards and its implementation mechanism.
Cabinet decrees were issued to approve the recommendations of the ministerial committee formed by Prime Minister Decision No. 1884 of year
2019 to review periodically the gas pricing for various industrial activities in a way that agrees with the framework of economic, environmental, political and social variables in the local market in accordance with the provisions of the regulations law of gas market activities. Provided that a regular review of these prices has to be carried out every 6 months, in light of the global prices, economic and social changes, by the relevant ministerial committee.
Whereas, the Cabinet approved the natural gas selling prices that the Ministerial Committee has recommended in this regard with Decisions No.2920 of the year 2021 for different industries as follows:
Natural gas pricing:
1- Natural gas supplied for the fertilizer and chemical industry According to the Prime Minister’s Decision No. 3221 of 2022 to determine the selling price of natural gas supplied to the fertilizer industry according to the following price equation:
Gas price (US dollars / million British thermal units) = (sale price of a ton of urea supplied to the Ministry of Agriculture after tax deduction * the percentage of supply determined for the Ministry of Agriculture – 60) + (the selling price of a ton of urea exported according to the average price of international publications FOB Egypt (the market – fertcon) during the month preceding the accounting month) * (1- The percentage of supply determined by the Ministry of Agriculture) – 60).
The decision included that in all cases, the minimum selling price shall not be less than 4.5 dollars per million British thermal units.
The selling price of natural gas supplied to the non-nitrogenous fertilizer industry is set at $5.75 per million British thermal units.
Whereas, the Cabinet approved the natural gas selling prices that the Ministerial Committee has recommended in this regard with Decisions No.2920 of the year 2021 for different industries as follows:
* Natural gas selling price for (iron and steel,) , according to the Prime Minister’s Decision No. 2902 of 2021 is $5.75 USD /MMBTU
* Natural gas selling price for (cement) , according to the Prime Minister’s Decision No. 3574 of 2022 is $12 USD /MMBTU
* Natural gas selling price for all other industrial activities) ,) , according to the Prime Minister’s Decision No. 2902 of 2021 is: USD $4.75/BTU
* Natural gas selling price to generate Electricity, according to the Prime Minister’s Decision No. 2375 of 2022 USD $3.00/BTU
* Natural gas selling price for Bricks industry , according to the Prime Minister’s Decision No. 2902 of 2021 is LE 110/BTU
* Natural gas selling price for subsidized bread bakeries , according to the Prime Minister’s Decision No. 2902 of 2021 is 14.10 piasters per cubic meter
* The selling price of a standard cubic meter of compressed natural gas, according to normal specifications, including the specific stamp duty used as fuel for cars, is 450 piasters
-It is worth mentioning that the selling prices of natural gas supplied to households and the equivalent commercial activity , according to the Prime Minister’s Decision No. 2902 of 2021 are as follows:
* (Consumption from zero to 30 cubic meters) LE. 2.50 per cubic meter.
* (Consumption from 30 to 60 cubic meters) LE 3.25 per cubic meter.
* (Consumption from 60 cubic meters and above) LE 3.75 per cubic meter.