Daily News Egypt: BG Demands Government Raise Price of Gas to $7 per million BTU

BG, a subsidiary of Royal Dutch Shell, is negotiating with Egyptian General Petroleum Corporation (EGPC) to price gas at $7 per million BTUs in the 9B concession area in Egyptian Mediterranean waters. EGPC has offered $ 5.88 per million BTUs.

A source close to the negotiation process told Daily News Egypt that the BG, with a representative from Royal Dutch Shell, leads the negotiations regarding pricing of gas produced from phase 9B and agreed on the price of $5.88 per million BTUs with a condition of paying $ 1bn in dues to BG.

He added that the Ministry of Petroleum did not provide an answer regarding the payment of financial dues nor determine the amount they can pay and the timing of it. MORE