{"id":1412,"date":"2017-08-25T02:27:22","date_gmt":"2017-08-25T02:27:22","guid":{"rendered":"http:\/\/127.0.0.1:8081\/?page_id=91"},"modified":"2017-08-25T02:27:22","modified_gmt":"2017-08-25T02:27:22","slug":"new-law-regulating-gas-market-activities","status":"publish","type":"post","link":"https:\/\/riad-riad.com\/new-law-regulating-gas-market-activities\/","title":{"rendered":"Egypt Issues New Law Regulating Gas Market Activities"},"content":{"rendered":"

A new law is issued to liberalize the downstream and midstream segments of the gas chain
\nof business in Egypt; it is the Gas Market Law No. 196 of 2017 (\u201cLaw\u201d) which was officially
\nissued and published on 1\/8\/2017. The Law excludes from its application the upstream
\nsegment which will continue to be governed by concession agreements without prejudice to
\nthe provisions of Law No. 20 of 1976 regarding the Egyptian General Petroleum Corporation. <\/p>\n

<\/p>\n

The Law aims at liberalizing the gas market by opening it up to the private sector to
\nparticipate in the shipping, transmission, storage, distribution, sale, importation and
\nmarketing of gas. The activities which were monopolized by the government before.
\nQualified consumers will be allowed to choose their gas suppliers. Licensed third parties will
\nbe allowed on a non-discriminatory basis to access the gas transmission and distribution grids and the storage and liquefied gas facilities (which are currently owned and run by the
\ngovernment).<\/p>\n

The Law is expected to enhance competitiveness, guarantee non-discrimination between the
\ngas market stakeholders, as well as prevent monopolistic practices. <\/p>\n

Establishing a Regulatory Authority<\/h3>\n

The Law provides for the establishment of a public body to be the regulator; it is the Gas
\nMarket Regulatory Authority (\u201cAuthority\u201d). The Authority shall be responsible for regulating,
\nlicensing and overseeing all gas-related activities. The Authority is particularly competent,
\ninter alia, to: <\/p>\n

    \n
  1. Regulate the relationship between all stakeholders in the gas market. <\/li>\n
  2. Issue licenses for all gas activities. <\/li>\n
  3. Set the mechanism of calculating the tariff for transmission, distribution and usage
    \nof storage grids and facilities. <\/li>\n
  4. Putting the rules of using transmission, distribution and storage grids and facilities
    \non a non-discriminatory basis. <\/li>\n
  5. Drafting model contracts related to all gas activities. <\/li>\n
  6. Handling complaints submitted by stakeholders and resolve it according to the rules
    \nto be decided by the executive regulations.<\/li>\n<\/ol>\n

    The Law prohibits the exercise of any gas-related activity without obtaining a license from
    \nthe Authority. A license will be issued, modified, renewed, suspended or cancelled by virtue
    \nof a decision of the board of directors of the Authority. <\/p>\n

    The Authority is authorized to issue a license for each separate activity for a specified fee
    \nwith a maximum amount of 0.1 of US dollars per each Million British Thermal Unit payable in
    \nEgyptian pounds, in addition to the expenses of publishing the decisions issued by the
    \nAuthority regarding the licenses. <\/p>\n

    The executive regulations shall decide the forms, supporting documents and the insurance
    \nto be submitted by an applicant to obtain a license and shall decide the timeframe for
    \nissuing the license as well its duration.<\/p>\n

    A license may not be assigned without the prior consent of the Authority. Also, the
    \nownership structure of a licensee may not be changed without the prior written consent of
    \nthe Authority.<\/p>\n

    Gas Market Activities<\/h3>\n

    The Law divided gas-related activities into, (1) Services Activities, and (2) Market Activities.
    \n\"\"
    \nService Activities includes the operation of
    \ngas grids and facilities through
    \ntransmission, storage, distribution of gas
    \nas well as LNG\/Regasification activities.
    \nWhile Market Activities covers gas
    \nshipping and supply. <\/p>\n

    For those entities which carry out multiple activities, a separate special purpose vehicle with
    \nindependent organizational structure must be established in the following case: <\/p>\n

      \n
    • an entity would like carry out two activities, one belongs to the Service Activity and
      \nthe other belongs to the Market Activity; and the gas subject to the Market Activity
      \nis owned by the licensee. <\/li>\n<\/ul>\n

      One entity can however carry out two activities in the following 3 cases: <\/p>\n

        \n
      1. One activity belongs to the Service Activities and the other to the Market Activities,
        \nand the gas subject to the Market Activity is not owned by the licensee. <\/li>\n
      2. If the two activities belong to the Market Activities. <\/li>\n
      3. If one of the two activities is not regulated by the Law. <\/li>\n
      4. \n

        To ensure independence and non-conflict, persons who are responsible for managing and
        \noperating any of the Services Activities may not participate in a direct or indirect way in the
        \nMarket Activities.<\/p>\n<\/li>\n<\/ol>\n

        Entities currently carrying out multiple activities are given 5 years to take the procedures
        \nrequired to comply with the requirement of the Law. This period can be extended to up to
        \nanother 3 years by virtue of a decision of the board of directors of the Authority. <\/p>\n

        Gas Market Participants<\/h3>\n

        Participants in the gas market are those who are licensed to carry out one of the gas
        \nactivities as following: <\/p>\n

        1.Transmission system operator<\/h4>\n

        A license can be granted to one or more transmission system operator (TSO<\/abbr>) to operate the
        \nnational gas high pressure pipelines grid system. A TSO<\/abbr> is required to allow shippers to
        \naccess its grid on a non-discriminatory basis for a tariff to be agreed by the Authority. A TSO<\/abbr>
        \nis allowed to stop the transmission of the agreed gas quantities in case the shipper fails to
        \npay the agreed transmission tariff, consumes higher quantities of gas or ships gas with
        \nspecifications different than those agreed upon.<\/p>\n

        2.Distribution system operators<\/h4>\n

        The Law allows several distribution system operators to be licensed. The distribution system
        \nincludes the medium and low pressure gas pipelines from the gas entering point to the
        \ndelivery point to the consumers. Licensees are required to allow third parties to accesses the
        \ndistribution system on a non-discriminatory basis against a fee that is approved by the
        \nAuthority. <\/p>\n

        3.Regasification facilities operators<\/h4>\n

        A license can be given to a company or more to operate regasification facilities. Licensee is
        \nrequired to allow third parties to access unused facilities on a non-discriminatory basis for a
        \ntariff to be approved by the Authority. <\/p>\n

        4.Storage facilities operators<\/h4>\n

        Licensed operators of storage facilities are required to allow third parties to access unused
        \nfacilities on a non-discriminatory basis for a tariff to be approved by the Authority. Storage
        \nfacilities means the underground and over the ground containers and warehouses of gas in
        \nits gaseous, compressed or liquefied form. It does not however include storage facilities
        \nrelated to production activities or those used by TSO<\/abbr>. <\/p>\n

        5.Gas shippers<\/h4>\n

        Gas shippers are entitled to use gas grids and facilities by paying their operators a tariff to be
        \napproved by the Authority. They are also allowed to buy or import gas and sell it to local
        \nsuppliers or other shippers. <\/p>\n

        6.Gas suppliers<\/h4>\n

        Gas suppliers are those who are licensed to buy gas from shippers and sell it to end
        \ncustomers or other suppliers. Gas suppliers are entitled to suspend supplying the gas to
        \nqualified customers in case the latter fails to pay the agreed tariff or consumed amounts
        \nabove the agreed quantities. The executive regulations shall provide for the procedures for a
        \nsupplier to suspend supplying the gas to qualified customers. <\/p>\n

        7.Qualified and Unqualified consumers<\/h4>\n

        Qualified customers are those entitled to choose their own gas suppliers through direct
        \nagreements specifying gas prices and quantities. Unqualified customers are those who
        \ncannot choose their suppliers and are supplied by gas according to the rules set by the
        \ngovernment against a pre-specified tariff approved by the Cabinet.<\/p>\n","protected":false},"excerpt":{"rendered":"

        A new law is issued to liberalize the downstream and midstream segments of the gas chain of business in Egypt; it is the Gas Market Law No. 196 of 2017 (\u201cLaw\u201d<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[],"yoast_head":"\nEgypt Issues New Law Regulating Gas Market Activities - riad-riad.com<\/title>\n<meta name=\"description\" content=\"Egypt Issues New Law Regulating Gas Market Activities\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/riad-riad.com\/new-law-regulating-gas-market-activities\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Egypt Issues New Law Regulating Gas Market Activities - riad-riad.com\" \/>\n<meta property=\"og:description\" content=\"Egypt Issues New Law Regulating Gas Market Activities\" \/>\n<meta property=\"og:url\" content=\"https:\/\/riad-riad.com\/new-law-regulating-gas-market-activities\/\" \/>\n<meta property=\"og:site_name\" content=\"riad-riad.com\" \/>\n<meta property=\"article:published_time\" content=\"2017-08-25T02:27:22+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/riad-riad.com\/storage\/app\/media\/newsletter%20issue%205\/Untitled-30.jpg\" \/>\n<meta name=\"author\" content=\"Mohamed\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Mohamed\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"6 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/riad-riad.com\/new-law-regulating-gas-market-activities\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/riad-riad.com\/new-law-regulating-gas-market-activities\/\"},\"author\":{\"name\":\"Mohamed\",\"@id\":\"https:\/\/riad-riad.com\/#\/schema\/person\/343abff9d1fb725bfa1dbf1244aab1cb\"},\"headline\":\"Egypt Issues New Law Regulating Gas Market Activities\",\"datePublished\":\"2017-08-25T02:27:22+00:00\",\"dateModified\":\"2017-08-25T02:27:22+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/riad-riad.com\/new-law-regulating-gas-market-activities\/\"},\"wordCount\":1147,\"publisher\":{\"@id\":\"https:\/\/riad-riad.com\/#organization\"},\"articleSection\":[\"News\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/riad-riad.com\/new-law-regulating-gas-market-activities\/\",\"url\":\"https:\/\/riad-riad.com\/new-law-regulating-gas-market-activities\/\",\"name\":\"Egypt Issues New Law Regulating Gas Market Activities - 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