Approving the tariff for using the Gas Transmission System Operator through the National Gas Grid for year 2023.

The Board of Directors of the Gas Regulatory Authority, chaired by His Excellency the Minister of Petroleum and Mineral Resources, Engineer Tarek El Molla, has approved the tariff for the usage of the gas transmission system (the National Natural Gas Grid) for year 2023. The tariff value has reached 37 cents per million British thermal units, representing a decrease of approximately 10% compared to the tariff value for 2022, which was 41 cents per million British thermal units.

This step comes as part of a series of policies and procedures carried out by GASREG to regulate and gradually liberalize the gas market, in accordance with international practices, with the aim of integrating the Egyptian gas market into global gas markets. GASREG has developed a modern and sophisticated methodology for calculating the tariff, which includes all the principles and controls that regulate it, in order to ensure that the network operators and owners receive the appropriate revenue that guarantees their continued provision of the service efficiently and effectively, while improving the efficiency of the infrastructure. At the same time, taking into account the interests of network users, to ensure the quality of the service provided and to be charged with the actual cost of service without exaggeration or discrimination. The tariff is currently approved annually, several variables are taken into account, the most important of which are the new investments of the network, such as pipelines, reduction stations, network facilities, and the expected amount of gas pumped, after reviewing gas shippers and consumers to ensure the security of supply, in addition to operating expenses, exchange rates, current asset value after excluding depreciation, and other factors.

The Gas Regulatory Authority aims to regulate gas market activities in order to maximize the use of resources and regulate the financial and commercial aspects of gas transmission activity, transforming it into an economic activity capable of covering its costs and achieving a fair return for network owners. This has been successfully achieved since the first tariff approval in 2019 after the establishment of GASREG. This step is paving the way for achieving a liberalized gas market in Egypt. The importance of issuing a fair tariff by an independent Authority lies in confirming the seriousness of transforming the Egyptian gas market into a regional hub for gas trade  according to its developing strategy.