The government raised the selling price of natural gas to cement factories by 109%, according to the Official Gazette in its Monday edition.
According to the Prime Minister’s decision, the selling price of natural gas for cement factories increased to $12 per million British thermal units, compared to $5.75 before the increase, while petrochemical producers using a mixture of ethane and propane will pay about $4.5 per million British units as a minimum, while the price of gas for other petrochemical producers is about $5.75.
According to the Official Gazette, brick producers will pay about EGP 110 per million thermal units, while other customers who have contracts will continue to pay natural gas prices according to their contracts.
Consequently, South Valley Cement, Misr Cement Qena, Misr Beni Suef Cement, and Sinai Cement disclosed to the Egyptian Exchange (EGX) on Tuesday that raising gas prices will not affect the cost of production because they replaced it with coal as part of the production data.
Prime Securities’ research believes that the price of gas for Sidi Kerir Petrochemicals, according to a good formula, will produce a very low price for EP compared to what it is currently paying per million British thermal units.
The Sidi Kerir Petrochemical Company did not disclose the impact of the decision on it.
According to the latest statements by EGAS Managing Director Magdy Galal last September, Egypt’s average production of natural gas amounted to about 6.7 billion cubic feet per day, and the average domestic consumption to about 6.1 billion cubic feet per day for FY2021/22.