Egypt ups gas price paid to Eni, Edison

In a bid to encourage growth in its natural gas industry, Egypt’s government has raised prices paid to Eni and Edison for gas they produce in the country.

The two companies will see their remuneration increase from $2.65 per million British thermal units to between $4 and $5.88 per million British thermal units.

An official with state company EGAS told Reuters that the price shift will apply to gas produced from new discoveries.

The government is trying to spur greater foreign interest in Egypt’s oil and gas industry as the country suffers persistent gas shortages that leave the supply of residential electricity and industrial feedstock unsteady.

The reported price hike follows an announcement in March by energy minister Sherif Ismail that the country would extend higher gas prices to multinationals BG Group and RWE Dea.

In the same month, BP signed a $12-billion gas development deal with the government.

Eni signed a $2-billion agreement in June for exploration in the country.

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