Egypt Gas agrees to complete LE232.8M-agreement with Town Gas

CAIRO – 29 April 2020: The board of directors of Egypt Gas Company agreed Wednesday to complete signing an agreement with Town Gas Company to deliver gas to 120,000 customers in different governorates.

The company said in a filing to the Egyptian Exchange (EGX) that the agreement stipulates the implementation of natural gas connections for 120,000 customers in Cairo, Giza, Alexandria, Ismailia and Port Said, with an estimated total value of LE 232.8 million.

The company indicated that the period of validity of this agreement is one year, and it may be renewed for another period with the consent of both parties.

Moreover, the Board of Directors agreed to complete the signing of a contract for the implementation of natural gas delivery works for the first stage in Mansoura City, Dakahlia Governorate, with the Urban Communities Authority at a value of LE 114.4 million, with a duration of 18 months.

In March, Egypt Gas increased its share in the capital of the Egyptian Company for Natural Gas Distribution in Cities (Town Gas) from 30 to 41 percent.

The company clarified in a filing to the Egyptian Exchange (EGX), Tuesday, that it purchased 11 percent of the Egyptian Natural Gas Company’s (GASCO) share in Town Gas for LE 19.4 million.

In 2019, Egypt Gas accomplished profits of LE 164.96 million, compared to LE 35.16 million in 2018.

The company operates within the gas utilities sector focusing on utilities. It has subsidiaries operating across Egypt, Saudi Arabia, Germany and Canada. Egypt Gas was established in September 1983.