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Gas Market Regulatory Authority shall transfer 25% of its revenues to the Ministry of Finance - Daily News Egypt

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Gas Market Regulatory Authority shall transfer 25% of its revenues to the Ministry of Finance

Authority follows commitment of companies to licensed activity to regulate gas market: Source

The Law for the Establishment of the Natural Gas Market Regulatory Authority stipulates that 25% of the annual revenues of the ministry of finance shall be transferred to the ministry of finance.

A source at the authority told Daily News Egypt that the authority is currently organising the internal market for the domestic distribution of natural gas by monitoring and following-up on the companies that have obtained licenses for “shipment, supply, and distribution” in order to ensure their compliance with the requirements of the activity.

He pointed out that the agency issued about 18 private and government companies to practice the “shipping, supply, and distribution” of natural gas in the local market.

The source also said that two licenses were issued to the Egyptian Natural Gas Holding Company (EGAS) to practice the activity of “shipping and supply” of natural gas to the domestic market.

He added that the Egyptian Natural Gas Company (GASCO) obtained three licenses for the “transport, distribution, and supply” of gas, by the committee formed by the gas market regulator to grant licenses to companies.

The source pointed out that 16 Egyptian companies engaged in the launch of gas sub-networks and the delivery of gas to consumers, obtained licenses to distribute gas in the domestic market.

The activities to be licensed are those related to the operation of gas networks and facilities as well as commercial activities such as gas shipment and supply. The first phase includes licensing activities of the gas transportation system operator, the license of the gas distribution system operator, the license of the gas transporter, and the gas supplier license.

Furthermore, the source said that the regulator of the gas market activities has no income in adjusting gas prices for the final consumer and is committed to the pricing approved by the cabinet.

He explained that the Gas Market Regulatory Authority has assessed the licensing fees for the transportation, shipping, distribution and supply of natural gas, in accordance with the executive regulations of the Gas Market Regulation Law of August 2017.

The license for each activity shall be issued after verifying the applicant’s technical and financial suitability in accordance with the requirements determined by the regulatory authority and the rights and obligations of the licensee.

The source added that the license is the legal document issued by the regulator of the activities of the gas market, according to which entity can exercise any of the activities of the gas market subject to regulatory procedures in the gas market inside Egypt.

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