News

The Board of Directors of the Gas Regulatory Authority, chaired by Eng. Karim Badawi, Minister of Petroleum and Mineral Resources and Chairman of the Authority’s Board, held its fourth session of 2024 on Sunday, September 22, 2024, at the headquarters of the Petrochemicals Holding Company “ECHEM.” During the meeting, the financial statements and final accounts for the fiscal year 2023/2024 were approved.

Eng. Mohamed Abdel Aziz, the CEO of the Gas Regulatory Authority, expressed his gratitude and appreciation to the previous Board of Directors of the Gas Regulatory Authority for achieving many of the goals listed in the law over the past six years since the establishment of the Authority, despite the Authority still being in the transitional phase compared to other countries, in a short period. He then presented the financial statements and final accounts for the fiscal year 2023/2024 and the annual report on the Authority’s work, highlighting the key achievements as follows:

– Issuance of validity certificates for licenses for the first category (transportation – shipping – supply – distribution) and activities circulating in the gas market for entities licensed by the Authority after reviewing their compliance with the licensing conditions, which is done annually.

– Approval of the full regulatory framework for compressed natural gas (CNG) activities, in addition to issuing validity certificates for the second category licenses of market activities, issued annually based on the entities’ compliance with the licensing conditions.

– Approval of technical inspection and safety requirements for operators of compressed gas transportation systems by trucks to align with safety and security standards for road transport.

– Establishment of rules for the transition from a non-eligible consumer to an eligible consumer, allowing them to contract with a gas supplier at negotiated contractual prices. This is a significant step towards opening up the Egyptian gas market.

– The Authority’s role in resolving disputes and addressing complaints through the Committee for Market Complaints, which has reviewed many complaints, studied them, and provided consensual solutions, presenting the results to the Board for approval.

– Approval of tariffs for the use of 12 natural gas transmission and distribution systems, reviewed annually, taking into account investment costs, return on investment, and operating costs, as these elements fluctuate annually.

– Active participation of the Authority in regional and international cooperation, engaging in the work of international organizations such as the Mediterranean Energy Regulators (MEDREG), presenting Egypt’s experience in the region, as well as the Regulatory Authorities Advisory Committee (RAAC) at the East Mediterranean Gas Forum (EMGF), the International Confederation of Energy Regulators (ICER), and the Energy Regulators Regional Association (ERRA), with effective participation in conferences and workshops.

– The regulatory role over all gas market activities, which are closely monitored with operating entities to ensure the market operates in compliance with the law and improves the quality of services provided.

Eng. Karim Badawi commented on the report presented regarding the Gas Regulatory Authority’s activities for the fiscal year 2023/2024, highlighting the significant achievements of the past period. He emphasized the Authority’s role in the upcoming phase, which will have clear responsibilities in line with Egypt’s transformation into a regional hub for gas trading. This transformation will undoubtedly lead to increased revenues and attract investments in the future.

The Minister also stressed the importance of the Authority’s strategy, which aligns with global rules and regulations that support the implementation of Egypt’s sustainable development strategy. The infrastructure available within the petroleum sector is key to supporting the development and regulation of the gas market.

Eng. Mohamed Abdel Aziz also confirmed that through the Authority’s basic steps in liberalizing the gas trading market in Egypt, allowing the use of gas systems by third parties, external and regional gas sources will be introduced, enabling eligible consumers to enter the gas market. The storage activity will be regulated and activated, leading to a competitive market in an attractive investment environment.

In conclusion, Eng. Karim Badawi extended his sincere thanks to the members of the Board of Directors and all employees of the Authority for their efforts in achieving the Authority’s strategy and objectives, wishing for even more achievements in the coming period to enhance the Authority’s role as a liaison with all entities operating in the gas market.