Egypt Allows Private Entities to Import Gas

In a move that could further ease energy shortage in the country, Egypt has allowed private entities to import natural gas.

"EGAS and the (state-owned) Egyptian General Petroleum Corporation (EGPC) approved this week to let others (private companies) use the state-owned national gas network in transferring and marketing the gas," Khaled Abdel Badie, chairman of state gas board EGAS, told news agency Reuters on Thursday.

In return, the state will get a tariff for transferring the gas through its infrastructure, Reuters added.

Abdel Badie did not provide details about the tariff but said EGAS has hired a technical consultant from the European Union to help form the regulations.

The Egyptian economy is facing severe gas shortage as local demand has ballooned in recent years amid declining domestic production. For the short term, the government is trying to source LNG from various sources to cater to growing demand.

State run EGAS has signed agreements to import 90 LNG shipments, 49 of which are going to be delivered in 2015 and 2016, petroleum ministry said earlier this year.