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Eng. Tarek El Molla, Minister of Petroleum and Mineral Resources and Chairman of the Board of Directors of Gas Regulatory Authority, chaired the meeting of the Authority’s Board of Directors on Wednesday, September 13, 2023, at the Ministry’s headquarters in the New Administrative Capital, in the presence of the Executive Director of the Authority, the members of the Board of Directors, and the representatives of the Central Auditing Organization, where the annual report on the Authority’s work was discussed. The year 2022-2023, the audit report of the Central Auditing Organization and the final account of the agency.

Engineer Tariq Al-Mulla started by welcoming the attendees and expressing the importance of this meeting as it presents the most important achievements of Gas Regulatory Authority during the previous five years since its establishment.

Engineer Karem Mahmoud began the meeting by presenting the work progress report for the fiscal year and the most important achievements achieved by the regulator during the five years. He explained that GasReg was established pursuant to Law No. 196 of 2017 with the aim of organizing everything related to the activities of the Egyptian gas market to ensure its availability and to work to ensure the availability of gas networks and facilities. To others, taking into account the state policy and the government’s strategy towards liberalizing the market and creating a competitive market, in addition to transforming into a regional hub for trading energy in general and gas in particular, by regulating relations between participants in the gas market and approving the necessary rules for carrying out activities to provide a fair, neutral and equal work environment for all market parties in Egyptian natural gas activities by developing and following up on the implementation of a legal and regulatory framework in accordance with international practices, characterized by transparency and efficiency and ensuring the effective use of infrastructure and optimal resources to achieve the quality of services provided at competitive prices.

He pointed out that at the beginning of 2018, GasReg`s work began issuing licenses and tariffs in 2019, followed by an important and necessary step to prepare for opening the market. This was by adopting the operating system code and adopting the strategic plan to open the market in 2020, then adopting the regulatory controls for CNG activity and issuing licenses to operating companies. In the field of compressed gas in the same year 2021, and despite the state of recession that was sweeping the world at that time, GasReg  continued to work according to a plan and strategy drawn up with a vision that is implemented with the utmost precision through conscious management, and this was followed in 2022 by approving an integrated regulatory framework for activities. compressed gas and also taking a preliminary step for the plan to open the market by adopting the annual capacity reservation plan, followed by an extremely important step as well, which is the adoption of qualified consumer controls, and the last preliminary step was in 2023 to open the market and for the utmost importance of maintaining public security and public safety, which has always been one of the most important basic pillars of the plans. It was necessary to adopt security and safety controls and mechanisms for the compressed gas transportation system, and this was also during the year 2023, and the last work during the year 2023 was to prepare the first draft of the distribution network operating code and approve an integrated regulatory framework for compressed gas activities in the same year.

He explained that in order to ensure the rights and obligations of all market parties, a committee was formed to decide and study complaints as of 2019, due to their great importance to the industrial sector, as it gives the opportunity to have a means to look into complaints and decide on them with complete impartiality, transparency, and integrity within an appropriate time to preserve the interests of all parties operating in the Egyptian market.

He pointed to the most important work that took place during the year 2022-2023, where he explained that in the context of the increasing importance of Egypt as a major player and directly influential in energy, it was necessary to be present in the global market, and indeed the regulator has become an essential member of some international organizations working in this field, for example, the European Union The energy regulators in the Mediterranean countries are MEDREG and the International Federation of Energy Regulators ICER and ERRA, where GasReg held important executive positions and has many contributions within these large global institutions, the most notable of which is the election of the CEO of GasReg as Vice President of MEDREG and the Advisory Committee for Gas Regulators RAAC at the Eastern Mediterranean Gas Forum EMGF. Because Egypt enjoys great confidence from these organizations, it hosted the General Assembly of the Mediterranean Energy Regulators Association (MEDREG).

He then reviewed the financial report and explained the extent of GasReg’s keenness during the fiscal year 2022-2023 to monitor the agency’s budget items accurately, to ensure disbursement and spending on the actual needs of the agency’s activities, taking into account the rationalization of spending and the arrangement of priorities, and in a way that does not affect the efficiency of performance, the work climate, and the safety of workers.

Then His Excellency the Minister, Engineer Tariq Al-Mulla, commented on the report on GasReg`s last year’s activity and also on what was presented for the most important stations and the distinguished progress during the five years of work. He stressed that the regulator`s strategy is consistent with global rules and regulations that contribute to preparing the country to be a regional center for gas trading by allowing the uses of the gas system. For use by others and establishing clear rules that allow the trade and circulation of gas in the presence of a real framework of neutrality and transparency.

He pointed out that the presence of an authority regulating gas market activities in Egypt that governs relations between all parties to the market gives a clear global indication of the state’s seriousness in attracting investment in light of the presence of a large infrastructure in the field of the gas industry and qualified technical personnel, as well as the presence of productive fields, broad export opportunities, and the presence of a large market. Gas is used in industry, commerce, cars, homes, and many other uses, as the Egyptian market is a mature, highly advanced market that is of utmost importance in the region and is ready to work with all parties globally and locally.

Al-Mulla concluded the session by expressing that GasReg was established at the right time, which means that we are on the right path to achieving the strategic goal of Egypt being a regional hub for gas trade and circulation, and expressing his appreciation for the view of regulators similar to ours in international meetings, which reflects full appreciation and respect for Egypt’s weight and advantage. His Excellency wished success in the next steps with the full support of the Egyptian state, and thanked Engineer Karem Mahmoud, CEO of GasReg, the members of the board of directors, and also all the gentlemen working in the regulator for this effort made for what was achieved in the five years, which is a very short period in comparison with what has been accomplished. On the ground, compared to similar regulators in some European countries that achieved this in multiples of that period.