GasReg Approved The New Natural Gas Transmission System Tariffs For Year 2021
The Board of Directors of the Gas Regulatory Authority “GasReg”, chaired by HE. Eng. Tariq Al Mulla, Minister of Petroleum and Mineral Resources, approved the new natural gas transmission’s tariff value for year 2021. The approved tariff was set at 38.6 cents per million British thermal units.
The new approved tariff comes within a set of policies and procedures which are being performed by GasReg aiming at organizing the gas market and gradually liberalizing it in compatible with international practices, with the aim of integrating the Egyptian market with global gas markets.
Gasreg used a modern developed methodology for calculating the transmission tariff, that included all the principals and components to take account of the actual costs incurred by the operator and the owners of the network, in order to provide appropriate return on investments and incentives to construct new infrastructure, which secure the continued optimal network’s performance and its improvement efficiently and effectively. At the same time, introducing the best quality of respective service to the network-users with minimize actual non-discriminatory prices.
The new approved tariff was determined by the Gas Regulator aiming to maximize the efficient use of resources and regulate the financial and commercial parts of the gas transmission activity to be economically profitable to the network owners, which happened successfully starting from year 2019 after the Gasreg establishment. This step is paving the way to a fully competitive gas market in Egypt.
The importance of approving a fair gas transmission’s tariff by independent regulator, in accordance with the principles of transparency, justice, equality and non-discrimination, is to emphasize the Egyptian government’s determination to gradually liberate the gas market and assurance of the third-party access to the networks, to be in line with Egypt’s development strategy to become a Regional Gas Hub.