The Egyptian Ministry of Petroleum called for a fresh review of prices for the natural gas supplied by the Egyptian Natural Gas Holding Company (EGAS) to Spanish-Italian company Union Fenosa’s liquefaction factory in Damietta. This is because natural gas prices have increased considerably over the past few months on the European market.
Minister of Petroleum Abdallah Ghorab told Al-Masry Al-Youm that EGAS has sent an official letter to Union Fenosa asking for a price review to allow Egypt to benefit from the price increase.
The price of one million thermal units of natural gas has reached US$8 in Europe.
In February the ministry signed a new supply agreement with Union Fenosa, under which the price was increased.
However, Ghorab said that agreement does not mean Egypt may not try to benefit from increases in international market prices. He added that Union Fenosa has shown understanding and a new agreement may be reached soon.
The prices agreed on in February have not been revealed, but the most recent data released by GASCO showed that the average price of supply stood at $2.9 per million thermal units in the fiscal year 2008/2009.