Egypt government is planning to liberalize downstream gas by the end of 2017

Egypt: Egyptian government is planning to deregulate its natural gas market by gradual privatization for making country as a regional energy hub. The house of representative in Egyptian government already submitted the draft law on December 21, which will be going to form by the end of 2017. According to the draft law of downstream gas sector will be divided into five major categories including pipeline operators, distributors, storage providers, gas shippers and importers.  According to government sources, a new natural gas regulator would be established to govern the deregulated downstream market. The regulator will have the rights to comment on natural gas prices with the supply chain including the investment costs, development of the pipeline infrastructure, and returns on investment.

TechSci Research depicts that growing liberalization in Egypt coupled with increasing consumption of natural gas in the country will anticipate the demand of LNG, globally. Growing focus on expansion of gas pipeline infrastructure, rising demand for natural gas from downstream sectors, declining LNG prices along with implementation of favorable government policies helps in boosting the demand for LNG globally. Further, increasing focus on development of adequate support infrastructure in various developing as well as developed economies is expected to boost LNG demand in the coming years.

According to released report of “Global LNG Market Demand & Supply Analysis, By Region, By Country, By LNG Terminal, Competition Forecast and Opportunities, 2011-2025”, global LNG supply market is forecast to exhibit a CAGR of over 5% during 2016-2025, on account of rising demand for cleaner fuels; oversupply of LNG due to liquefaction capacity additions in Australia, US and Papua New Guinea; and declining prices of LNG over the last few years.