Rosneft applies for natural gas import license - ENTERPRISE

Sunday, 2 December 2018

Rosneft applies for natural gas import license: Russian energy giant Rosneft has begun the process of acquiring a license to import natural gas, sources told Al Mal on Thursday. The company has apparently received preliminary approval from the government to form a JV with a local entity for the activity, they added. If true, the move indicates that not only is the government jump starting the process of issuing gas import licenses, but that it has drawn the appetite of oil and gas majors.

Background: After being formed in 2017, the Natural Gas Regulatory Authority — the country’s regulator overseeing a newly liberalized gas import and distribution market — has not moved to issue licenses as quick as some in the industry had hoped. The regulator had postponed in September the issuance of natural gas import licenses to private sector companies, ostensibly because the private sector was “unprepared.” This all appeared to change following the signing of an agreements paving the way for gas imports from Israel. The Oil Ministry is ready to consider permit requests from the private sector to help Egypt become a regional hub for gas trading, Oil Ministry spokesperson Hamdi Abdel Aziz had said at the time. EGAS has renewed preliminary approvals giving Qalaa’s TAQA Arabia, BB Energy and Fleet Energy the import licenses.

Natural Gas Regulatory Authority postpones issuance of natgas import licenses - ENTERPRISE

Wednesday, 12 September 2018

The Natural Gas Regulatory Authority has postponed the issuance of natural gas import licenses to private sector companies, saying the private sector is “unprepared,”according to an EGAS source. EGAS has renewed preliminary approval to grant Qalaa Holdings’ TAQA Arabia, BB Energy and Fleet Energy the import licenses, effectively giving them additional time after all three allegedly failed to submit paperwork to obtain the final license, according to the source. The preliminary approvals, which are renewed every six months unless a permanent license is obtained, must be ratified by the authority.

Take this with a grain of salt: When all three companies fail to file paperwork on time, that’s not the private sector being “unprepared,” it’s the business sending a message to government about license terms — and the regulator putting on some pressure in public. We suspect we’re not the only ones who hear echoes here of round one in the solar energy feed-in-tariff imbroglio.

Background: The authority was given the green light in July to begin issuing and revoking licenses for private players in the natural gas industry, a move that was made possible by the deregulation of the sector through the Natural Gas Act. Sources had said at the time that the first import license would likely be issued before the end of 2018.

EGAS renews initial approvals for BB energy, Taqa, Energy Fleet for gas importation - DAILY NEWS EGYPT

10 September 2018

Mohamed Adel

EGAS has renewed the approvals for the companies BB, Taqa and Fleet Energy on the licenses for natural or liquefied gas importation to provide it within the local market, after the licenses expired and the companies did not submit the required data to obtain the licenses.

A source at EGAS told Daily News Egypt that the three companies that obtained the initial approvals for the licenses have not submitted the data related to the importation body and the supplied amounts, as well as the client, with which there is a contract to obtain gas in the local market.

He explained that the initial approval on the import licenses is renewed every six months, and the companies applying to import gas have not taken any real steps to obtain the final licenses.

The private sector companies that obtained initial approvals are Energy Fleet, headed by Essam Kafafy, located in Panama, in addition to BB Energy, owned by a Lebanese Family, located in London. In addition, Taqa Arabia, owned by several funding gulf companies, in cooperation with Egyptian Qalaa Company.

Natgas market regulator sets fees for private sector’s use of the state grid at USD 0.38 MMBtu - ENTERPRISE (Corrected)

Sunday, 5 August 2018

The Natural Gas Regulatory Authority set on Thursday the fee that private sector players will have to pay to use the state’s national grid to transport gas at USD 0.38 / MMBtu, according to its official website. The rate applies for the first year of the program, suggesting a revision could be in the works after the initial trial period. License fees will be calculated based on the amount of gas transferred and can be settled in EGP. The regulator will be issuing permits for different types of commercial gas market activities, including grid operations and maintenance, supply, distribution, and shipping, with different fees set for each type as follows:

• USD 0.57/MMBtu for transmission licenses;
• USD 0.31/MMBtu for shipping licenses;
• USD 0.23/MMBtu for distribution licenses;
• USD 0.08/MMBtu for supply licenses.

Permit requests must be processed within 10 working days of application and any additional documents required by the regulator must also be submitted within 10 working days. The regulator will then have 45 days to approve or deny the request and fees must be deposited within seven days of that date.

Natgas market regulator to officially begin issuing import permits - ENTERPRISE

Thursday, 5 July 2018

Natgas market deregulation gets in full swing as regulator to officially begin issuing import permits: The board of directors of the new natural gas market regulator approved that it begin issuing and revoking licenses for private sector natural gas industry players, according to an Oil Ministry statement. The regulator — established under the Natural Gas Act, which deregulated the market and opened it up to the private sector — will begin its work “in the coming period,” according to the statement. Natural gas companies are currently gathering the necessary paperwork to submit their requests for a license to distribute natural gas, ministry sources said, Al Shorouk reports.

Egypt is ready to be an energy hub for Europe, investment chief says - CNBC

23 APRIL 2018

Holly Ellyatt

• With gas production in full swing across a number of sites in Egypt, the country is ready to become a key exporter of energy in the region and beyond, the chairman and founder of investment firm Qalaa Holdings told CNBC.
• "In the oil and gas sectors Egypt remains a very important player," Ahmed Heikal, told CNBC's "Capital Connection" on Monday.

With gas production in full swing across a number of sites in Egypt, the country is ready to become a key exporter of energy in the region and beyond, the chairman and founder of investment firm Qalaa Holdings told CNBC.

"In the oil and gas sectors Egypt remains a very important player," Ahmed Heikal, told CNBC's "Capital Connection" on Monday.

Heikal said there was impetus for Egyptian gas to flow to European markets via terminals in Idku and Damietta.

First private sector LNG import license to be issued at the end of Feb -sources - ENTERPRISE

Tarek El Molla interviewed by CNBC - Feb 2018 Egypt

Thursday, 15 February 2018

New natgas regulator to issue first LNG import license before the end of Feb? The newly-established natural gas market regulator is expected to issue the first LNG import license to the private sector before the end of February, when its board meets for the first time, sources close to the matter tell Al Shorouk. While it remains unclear which company will make the first draw, we had heard last year that EGAS gave BB Energy, Fleet Energy, and Qalaa Holdings’ TAQA Arabia preliminary approval on natural gas import licenses, following the issuance of the Natural Gas Act, which reduces the state’s role to regulator and opens the market to the private sector. Four other unnamed companies are reportedly also seeking import licenses.

Fees for using state infrastructure also to be announced: The board, whose full lineup will be announced next week, will also discuss the fees private sector players will have to pay to use the state’s natural gas grid under the act, the sources also said. News of the meeting comes one day after Ismail Cabinet issued the executive regulations to the Natural Gas Act, officially bringing it into effect. Oil Minister Tarek El Molla, who will chair the board, had previously said that the state will fully exit the market by 2022.

Ministerial committee resolves TAQA Arabia dispute with EGAS - ENTERPRISE

Sunday, 28 January 2018

The Ministerial Committee for Settlement of Investment Disputes announced a settlement has been reached in a dispute between Qalaa Holdings subsidiary TAQA Arabia and EGAS. The dispute arose when EGAS did not fulfil contractual requirements towards TAQA and assigned natural gas distribution rights to separate companies, resulting in losses to TAQA estimated to be EGP 7 bn. The resolution reached between the parties does not entail any direct payments by the Egyptian government, but amends some contractual clauses between EGAS and TAQA. Our friend Moustafa El Bahabety, the Deputy Justice Minister for Arbitration and International Disputes, who is the head of the organization’s technical committee, informed us that the resolution signed off by the Ismail cabinet at its meeting last week.

Natural Gas Act regs ready in October - ENTERPRISE / AL SHOROUK

Sunday, 20 August 2017

The executive regulations of the Natural Gas Act should be ready by early October, an EGAS official tells Al Shorouk. 

The source expects the new natural gas industry regulator would be set up before the end of the year — and that the first license to import gas privately should be issued in 1H2018.

As we noted last week, EGAS had reportedly approved natural gas import licenses on Wednesday for the three private companies: 

• Fleet Energy, 
• BB Energy, and 
• Qalaa Holding’s TAQA Arabia.

The Natural Gas Act is now law of the land - ENTERPRISE

Tuesday, 8 August 2017

Even if there’s pullback on electricity, the state took a clear step forward yesterday to deregulate the natural gas industry. President Abdel Fattah El Sisi signed into law the long-awaited Natural Gas Act, the drafting of which wrapped back in October 2015. The Act, published in Monday’s issue of the Official Gazette, will see the state become the primary regulator of the industry, but allow the private sector to directly trade gas using the pipeline and network infrastructure. The law will establish a state regulator that would have a say in pricing gas, set up the rules of the system, encourage investment in the sector, and ensure equal access by private sector players to the national gas infrastructure. The regulator will also be tasked with drawing up the timeline for privatization. Five primary industry roles are now open to the private sector: Pipeline operator, distributor, storage provider, gas shipper, and importer. Pipeline operators and distributors can set their own pipeline utilization fees. You can tap here for a refresher on other key points of the legislation, including definitions of the various roles open to private-sector players.

EGAS grants three companies preliminary approval to import gas - ENTERPRISE / AL BORSA

Tuesday, 1 August 2017

EGAS has granted three unnamed companies preliminary approvals on their requests to import natural gas privately and pump it through the national pipeline network, said EGAS Vice Chairman Amira El Mazni, according to Al Borsa.

Five companies had bid to import natural gas privately, including Dolphinus Holdings — rumored to have been in talks to import gas from Israel’s Tamar gas field — and TAQA Arabia.

Licenses to import gas will come once the Ismail cabinet approves the executive regulations of the Natural Gas Act.

The regs are expected to be completed by September.

Stability In Libya To Start An Oil Race - OILPRICE.com

May 04, 2017, 1:52 PM CDT
By Cyril Widdershoven

Libya’s ongoing civil war, which has resulted in a hothouse environment for extremists, Da’esh supporters and regional coalitions, could be heading to a slowdown in activity. Arab media sources claim that the two main adversaries, Libyan general Khalifa Haftar, currently ruling the east of the country via the Libyan national army (LNA), and UN-backed Fayez Al Serraj, Head of the Presidential Council, have reached an initial agreement to cooperate. During a meeting in Abu Dhabi, both parties seem to have agreed to form communication channels between the PC and the Operation Dignity (which was described by Haftar as the Libyan national army). At the same time, Al Serraj en Haftar has agreed that the general will be nominated for president of Libya in March 2018. Such an agreement would be a major success, not only for the two Libyan factions but especially for the main power brokers, Egypt and the UAE. The next weeks will be crucial for a successful implementation, as there is already opposition to the deal. Colonel Mahmoud Al Zagal, who is the commander of the Libyan National Guard (LNG) in Tripoli, openly has refuted the option that Haftar is in the picture.

Taqa Arabia, Dolphinus call for licence to import gas from EGAS to private sector - DAILY NEWS EGYPT

Preliminary approval to be granted to companies that request licences to sell gas in local market, says source

Mohamed Adel September 20, 2016

Taqa Arabia and Dolphinus Holdings sent a formal request to Egyptian Natural Gas Holding (EGAS) to obtain a licence to import natural gas through the private sector in the Egyptian market.

A senior source in the petroleum sector told Daily News Egypt that the gas market regulation authority is awaiting the issuance of the law by the House of Representatives that will allow licences to be issued to private companies to import gas and sell it in the local market.

The source added that the foreign companies that applied to obtain the licence cannot be mentioned as of now.

It is expected to approve the completion of the gas market regulation law by the end of 2016, according to the source.

Egypt looks to UK as hub model - INTERFAX

ELNG in Idku. Egypt hopes its existing facilities can be used by 
other producers in the region. (BG Group)

Rachel Williamson, 28 January 2016

Egypt is looking to the UK as a model for its plans to become a regional energy hub, and bringing in trading companies will be vital to achieve this goal, according to Khaled Abu Bakr, executive chairman of the country’s largest gas distribution company, Taqa Arabia.

Abu Bakr told Interfax that North Sea success stories would be a good guide for the country, which has been producing gas to export around the world for decades but is now looking to become a more regional player.

With domestic gas and LNG imports being reprioritised for certain industries, including the power sector, the time is ripe for trading companies to enter Egypt’s gas market, which is slowly liberalising, and become the new middlemen between producers and customers.