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Policy & Regulation

EGAS bypassed in Egypt’s market liberalisation plans

New legislation aimed at opening up the Egyptian gas market will allow private companies to import and distribute gas New legislation aimed at opening up the Egyptian gas market will allow private companies to import and distribute gas.
By Rachel Williamson 19 January 2017 Middle East & Africa / Policy & Regulation 0 23583
The Tourah cement plant, Egypt. The country’s industrial gas users have suffered from shortages. (Suez Cement)

The liberalisation of Egypt’s downstream sector could cause acute short-term shortages in its gas market, but the move will bring long-term benefits as the country adopts international standards, industry sources say.

The new law will allow private companies to import and distribute gas, bypassing the state-owned Egyptian Natural Gas Holding Co. (EGAS). Oil and gas companies are currently providing feedback and a draft of the law is expected to be issued within six months.

However, although Egypt’s new energy law could be "fantastic for industry", there is...