Lower natgas costs on parliamentary committee agenda to prop up local industry

The House Industry Committee pushing forward with its agenda to press the Oil Minister Tarek El Molla to cut prices of natural gas to factories in order to help prop up local industry, according to local press.

Industry figures are particularly unhappy about local gas prices remaining above international prices, said committee head Moataz Mohamed.

Getting natural gas at a lower price has been a longstanding request from factories. The government agreed to set an industry-wide $4.50 / mmBtu price for natural gas in March as part of a wider fiscal stimulus package to help support the economy during the pandemic.

Manufacturers are still unhappy, since this is around 30 percent above the $3.07 / mmBtu international spot price right now, and have been pushing the government to slash prices further — with some trying to get prices below the international average to help drive the sector’s recovery from covid-19.

Also on the committee’s wish-list: A “Unified Manufacturing Act” that would disentangle ministries’ mandates when it comes to investments and cut down on the bureaucracy to help streamline investment policies, Mohamed said.