EU grants Egypt €68mn for home gas delivery project

Egypt and the European Union signed Monday €68 million grant agreement for a project aimed to expand natural gas access to 1.5 million Egyptian households in eleven governorates nationwide.

The agreement was signed by Egyptian Minister of International Cooperation Sahar Nasr and European Union Foreign Policy Chief Federica Mogherini, who is currently visiting Egypt.

Mogherini is set to spend two days in Cairo and will give a speech at the Cairo University on 3 November,

The Egypt Household Natural Gas Connection Project will support the Egyptian government’s programme to replace household consumption of Liquefied Petroleum Gas (LPG), which is mostly imported, with grid-connected natural gas.

The project aims to expand natural gas access to 1.5 million Egyptian households during the period 2014 – 2017. The project is partially funded by the World Bank Group (US$500 million loan), the French Development Agency (€70 million loan), and the European Union (€68 million grant). It Project will be implemented by the state-run Egyptian Natural Gas Holding Company (EGAS) and its affiliates Town Gas and Egypt Gas.