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29-Aug-2016

Cabinet approves raising natural gas installation fees for households

Cabinet approved raising installation fees for household natural gas connections by EGP350 to reach EGP1,850 due to high delivering cost, according the Minister of Oil Tarek El-Molla. The new fees will not apply to all citizens, with lower-income people to be exempt, he said. It is worth noting that gas connection fees have been set at EGP2,500/ home connection for some time now, the payment of which was broken down between the customer (EGP1,500) and the government (EGP1,000). This decision to raise connection fees by EGP350 comes as a positive upside to operators in the field, which include Egyptian Kuwaiti Holding's (EK Holding) [EKHO.CA] Natenergy, which has connected over 1mn customers to the national gas grid. (Al Ahram Online, Ahmed Hazem Maher)   Egyptian Kuwaiti: USD0.45 as of 28 August 2016, Rating: Buy, FV: USD0.80 per share, MCap: USD461mn, EKHO EY / EKHO.CA  

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