Egypt Raise Price of Gas Paid to Eni, Edison

Egypt has hiked the price of gas it pays to Eni and Edison, an official with state-owned gas company EGAS told Reuters on Sunday.

"(The oil ministry) signed a deal that amended the price for gas with Eni to a maximum $5.88 for every million British thermal unit and a minimum of $4, based on amounts produced. This is up from $2.65," the EGAS official told the news agency on condition of anonymity.

The official said that another deal had been signed with Edison for a price of $5.88 per million British thermal units, up from $2.65.

The amended prices will apply to gas produced from new discoveries, the official said.

Increasing the price is one of the measures Egyptian government has taken in recent months to encourage exploration in order to boost declining domestic natural gas production. Cairo has also been paying its outstanding debt it owes to foreign energy companies.