The Egyptian Natural Gas Holding Co. has signed an agreement with Spain's Union Fenosa allowing it to increase the price of natural gas to reflect soaring global crude oil prices, according to a report from Bloomberg.
The business channel also quotes a company spokesman, Enas El-Sheikh, as saying the two companies have agreed to eliminate the upper limit on gas prices. Union Fenosa is part of Barcelona's Gas Natural SDG SA, which owns a 50 per cent stake in an Egyptian gas-liquefaction factory.
The Egyptian state-run firm is also negotiating a hike in the price of gas it sells to Jordan. Its controversial agreement with Israel is also thought to be subject to change.
Egypt exported 650 billion cubic feet of gas in 2009, 30 per cent of which went to Jordan, Syria and Lebanon, as well as via the El Arish-Ashkelon pipeline to Israel.