Prime Minister’s Decree No. 470 of the Year 2004 = قرار رئيس مجلس الوزراء رقم 470 لسنة 2004

Abstract

Article 1: The selling prices of natural gas for all industrial activities and power stations whatever the legal system to which the activity is subject, valued in Egyptian pound, shall be determined at the equivalent of 85 US cents/1000 cubic feet. Article 2: With regard to the industrial activities and power stations to be established and contracted with, following the enforcement of the provisions of the present decree - conditional upon the actualization of the petroleum sector economies - a deduction equivalent to 10 US cents/1000 cubic feet, in Egyptian pounds, from the price referred to in article (1) of the present decree may be made for connecting and conveying the gas, in the following cases; a) Projects, which the length of pipelines connecting the gas to them from the main pipelines of the national network of natural gases does not exceed one kilometer. b) Projects, which the length of pipelines connecting the gas to them from the main pipelines of the national network of natural gases exceeds one kilometer providing they shall incur the total cost of the infrastructure for connecting the natural gas to the project. The deduction referred to in the first clause of the present article shall not apply to the projects, which the petroleum sector incurs the cost of the infrastructure for connecting the natural gas to them from the main pipelines of the national network of natural gases, and which the length of the pipeline connecting the gas to them exceeds one kilometer up to maximum length of ten kilometers, providing the economies of connecting the gas to the project shall be realized for the petroleum sector. Article 3: The cost of natural gas consumption by project of the free zones and the economic zones shall be settled in US dollars. Apart from that, the value of natural gas shall be settled by an equivalent in Egyptian pounds, according to the US dollar exchange rate officially announced at the Central Bank of Egypt on the date of issuing the invoice, according to the provisions of article (111) of the said Law on Central Bank, Banking Machinery, and Exchange. Article 7: The provisions of the present decree shall be subject to the agreements in force concerning the sale of natural gas for the purpose of its export, providing the price determined in these agreements shall not be less than 75 US cents/1000 cubic feet. Article 10: A fund entitled “Fund for balancing Electricity and Industry Prices” shall be established at the Natural Gases Holding Company” headed by the Minister of Petroleum with the membership of representatives from the Ministries of Electricity and Power, Industry and Technological Development, Military Production, and Finance, and the Public Business Sector.