Chairman says firm is uncertain when debts will be paid
- Dues from public sector factories make up 75 per cent of total debt
- £E1bn is owed by government-owned National Cement Factory
- Egypt is importing 500 million cubic feet of gas a day
State-owned Egyptian Natural Gas Holding Company (Egas) is owed £E12bn ($1.57bn) by the industrial sector, according to Abdel Badie, the organisations chairman.
Dues from public sector factories amount to 75 per cent of the total debt, according to statements made by Badie to Daily News Egypt.
He said a total of £E1bn was owed by the government-owned National Cement Factory.
Badie says Egas has demanded payment from National Cement Factory, but it is unclear when it will receive the dues.
Egypt is currently attempting to address its worst gas shortage in years as demand outstrips domestic production.
Egas has attempted to address the shortfall in gas production by tendering two liquefied natural gas (LNG) import terminals.
The countrys first floating LNG import terminal, supplied by Norways Hoegh LNG, arrived in April.
The second terminal was tendered in May.
Currently, Egypt is importing 500 million cubic feet a day (cf/d) of gas, and it is aiming to increase this to 1 billion cf/d.
It is thought that lack of liquidity due to unpaid debts is hampering Egas efforts to increase gas imports.
You might also like...
A MEED Subscription...
Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.