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Policy & Regulation

Middle East shies away from gas price reform

With few exceptions, the MENA region has failed to increase gas prices to a level that makes exploration and production economically viable With few exceptions, the MENA region has failed to increase gas prices to a level that makes exploration and production economically viable.
By James Gavin 31 October 2019 Middle East & Africa / Exploration & Production 0 34739
Suez Cement's El Minya plant in Egypt. (Suez Cement)

The key issue: Egypt announced in early October that it is lowering gas prices for energy-intensive industries. Across the MENA there is an unwillingness to lift prices to a level that would make domestic extraction profitable.

Interfax analysis: Gas prices are kept artificially low across the Middle East to protect local industries. As a result, resource-holders are missing out on opportunities to tap domestic gas reserves.

Egyptian Prime Minister Mostafa Madbouly announced in early October that the price of gas delivered to domestic industrial consumers would...