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EGAS says it is owed EGP 16bn by industrial sector - Daily News Egypt

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EGAS says it is owed EGP 16bn by industrial sector

Debts owed to Egyptian gas holding company EGAS for quantities of gas obtained by the industrial sector reached EGP 16bn by the end of July, according to a senior company official. Factories were notified in February that gas supplies will be cut in the event of non-payment of debts, but no significant measures have been …


Gas will be cut on industrial factories if the sector fail to pay its dues to E-Gas (AFP photo)
Gas will be cut on industrial factories if the sector fail to pay its dues to E-Gas
(AFP photo)

Debts owed to Egyptian gas holding company EGAS for quantities of gas obtained by the industrial sector reached EGP 16bn by the end of July, according to a senior company official.

Factories were notified in February that gas supplies will be cut in the event of non-payment of debts, but no significant measures have been taken to pay off the dues thus far.

The most prominent public sector companies in debt to EGAS include National Cement which owes more than EGP 500m, the official said.

The factory receives approximately 204m cubic metres of natural gas per year, equivalent to 169% of the contracted amount of 121m cubic metres.

National Cement’s factory did not recognise the mid-year price increase imposed by the government stipulating a rise from $4 per million BTUs to $6.

The official emphasised that natural gas supplies can only be cut through a decision of the prime minister.

The Petroleum Authority formed a committee to inventory debts and negotiate with factory owners to schedule payments. If the payment schedule is not adhered to, the company will be warned and its gas supplies cut until all debts are paid.

Egypt’s industrial sector consumes approximately 23% of Egypt’s production of natural gas. Fertiliser plants consume 10%, cement 8%, and petrochemicals 5%, the official added.

The total indebtedness of the Ministry of Electricity to the Ministry of Petroleum amounts to approximately EGP 65bn for fuel, compared to EGP 52bn in January.

However, the Ministry of Electricity only recognises approximately EGP 18bn in debt, as it does not recognise changes in fuel prices for electricity. Power plants consume approximately EGP 2bn in fuel per month, the official said.

He added that the Ministry of Electricity has not paid for gas and fuel oil obtained by power plants for a significant period, which led to an accumulation of debts.

Power plants currently receive approximately 81m cubic metres of gas per day and 15,000 tonnes of fuel oil.

 

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https://www.dailynewsegypt.com/2014/08/03/egas-says-owed-egp-16bn-industrial-sector/
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