Egypt to cut gas supplies to industry
CAIRO (Reuters) - Egypt will divert natural gas supplies away from industry in August to meet increased demand from electric power plants, an official at the country's state gas board, Egyptian Natural Gas Holding Co. (EGAS), stated.
In the past, natural gas shortages have forced EGAS to ration gas supplies to industry during months of peak consumption, crippling production and hampering Egypt's economic recovery.
Once an energy exporter, Egypt has turned into a net importer because of declining oil and gas production and increasing consumption. It is trying to speed up production at recent discoveries to fill its energy gap as soon as possible.
"The needs of the electricity sector in Egypt are expected to rise to 3.9 Bcfd in August from the present mark of 3.2 Bcfd," the EGAS official said.
Egypt currently produces about 3.9 Bcfd of gas and imports 1 Bcfd to 1.1 Bcfd.
Egypt said in March that it would reduce the price it offers natural gas to steel and iron factories to $4.5/MMBtu from $7/MMBu, but this has yet to be implemented.
(Reporting by Abdel Rahman Adel and Ehab Farouk; writing by Eric Knecht; editing by Adrian Croft)
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