By Mohammed Jetutu, in Cairo
Egypt is rapidly on course of eliminating debts owed by the state to E&P companies who produce natural gas in the country.
Between January and end of March 2018, Finance Minister Amr El-Garhy reckons, the country would have paid $750Million. The government pledges there would be no debt by the end of second half 2019.
Dana Gas, which is one of the lowest international gas producers, reported in its 2017 Results that its receivable balance had reduced from $265Million at the end of 2016 to $228Million at the end of 217. This is despite the fact that it had received $164Million in 2017. Meaning, the payables pile up for the government of a country with insatiable demand for natural gas.
Companies who produce gas in Egypt pump the molecules into the National Gas Grid, controlled by EGAS, the state gas company, which transmits and distributes to industries, power plants and households. Egypt is currently consuming around 6Billion cubic feet per day (Bcf/d) of natural gas, out of which electricity plants consume 3.9Bcf/d