Thursday, March 9, 2017

Steel producers promised lower gas prices come December, head of FEI’s steel division says - ENTERPRISE / AL BORSA

Thursday, 9 March 2017

Zohr is a godsend to industry: The government has reportedly once again promised steel producers that it will reduce their natural gas prices to USD 4.5 from USD 7 per mmBtu by the end of 2017 once capacities from new field discoveries come onstream, according to the head of the steel division at the Federation of Egyptian Industries (FEI) Gamal El Garhy, Al Borsa reports. We would usually take this with a grain of salt, but with Zohr coming online, industry appears to be getting a reprieve from higher gas prices. 

Industry groups, which have been lobbying for lower gas prices, had been promised lower prices since last June. In July last year, the Trade and Industry Ministry announced it was working on a standard pricing scheme to supply all industrial sectors with natural gas at USD 4.5 per mmBtu by September last year.