CAIRO: Petroleum Minister Sameh Fahmy’s Sunday announcement that gas export prices would be reviewed was perceived as a victory for the opposition campaign, but its spokesman still expressed concern.
In a statement released by the popular campaign to prevent Egyptian gas exports Monday evening, spokesman Esmat El Sadat indicated his “unease over Fahmy’s comments to the People’s Assembly (PA).
Sadat said Fahmy’s announcement imbued the issue with more ambiguity rather than presenting the necessary clarifications. He stated that MPs presented a list of questions that remained unanswered by Fahmy.
Some of those questions were the real figures of Egypt’s gas reserves, which officials from the ministry place at between 72-74 billion cubic meters while an international independent expert placed it as closer to 36 billion.
A further disparity between official figures and an independent report was the duration the reserves would last, Sadat added, with the ministry stating it was 30 years while the independent report claimed it was 16 years.
Concerning Fahmy’s statement that the government would not sign any further exportation contracts until 2010, Ibrahim Zahran, petroleum expert and technical advisor for the campaign, said that 18 percent of Egypt’s gas had been apportioned for exportation this year and currently only 17 percent was actually being exported.
El Sadat did welcome the steps the ministry had taken so far to address the issue of gas exportation and requested that they continue to maintain the dialogue with the opposition.
Fahmy has said at the PA session on Sunday that prices of natural gas agreements would be reviewed “without exception.
The opposition campaign is lobbying for the prevention of gas exports in light of increased world prices stating that the local economy needs Egypt’s natural gas, especially as the price of the exported gas is not line with current world prices in light of the contracts being signed in the past.
Additionally, the campaign is against Egypt exporting gas to Israel under any circumstances, and the fact that the gas is being exported at lower than market prices has further enflamed opposition.
Coordinator of the campaign Abdallah Helmy told Daily News Egypt Monday, “We need an open session that includes opposition, government and international bodies to announce the correct figures and make calculated decisions regarding a new pricing scheme [for gas exports].
He called for an international committee to be formed by the PA’s industry and energy committee to ascertain and announce the exact figures of Egypt’s gas industry to end the disparity between international and official figures of gas reserves, prices and revenues.
