Egypt is in talks to offer higher prices for the natural gas it buys from its foreign energy partners to encourage more investments in its hydrocarbon sector, the country's oil minister said in an interview broadcast on state-owned television.
Egypt
is in
talks to offer higher prices for the natural gas it buys from its foreign
energy partners to encourage more investments in its hydrocarbon sector, the
country's oil minister said in an interview broadcast on state-owned
television.
"We've recently started negotiations with our foreign partners to modify the
gas prices we pay them…in order to allow them to achieve suitable returns on
their investments," Sherif Ismail told Nile News Channel in an interview
posted on the channel website Sunday.
Egypt
currently pays around $2.65 per million British thermal units produced by
foreign energy firms operating in the country, which is far lower than
international prices, Mr. Ismail explained.
"This price could be suitable for gas extracted from the
Western
Desert
or
the Nile Delta, but it is low for the deep waters area because of the higher
operational costs," he said, but didn't say how much
Egypt
is
going to offer its foreign partners.
Egypt
has
faced a natural gas and diesel shortage since last year, which has pushed up
food costs, seen long lines at filling stations and electricity blackouts. The
energy-supply problems have deepened popular discontent with
Egypt
's
former ruling Islamist government and exacerbated broader economic difficulties
there.
The country has frozen talks to import liquefied natural gas from wealthy
Qatar
due
to political instability and violence that erupted after the army swept the
streets of the supporters of ousted President Mohammed Morsi in August. The
country is struggling to provide acceptable bank guarantees that would facilitate
the flow of energy supplies, people familiar with the talks have previously
said.
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