Two Egyptian companies, Delta Company for Fertilizers & Chemical Industries and Delta Steel, filed lawsuits against the Egyptian Natural Gas Holding Co (EGAS) for increasing gas prices from $3 per 1m thermal units to $4.5 without informing them via an official correspondence. The two companies are asking the court to waiver the additional debt due to the increase in prices, reported Al Borsa News. The case was postponed until mid December when Delta Steel completes all necessary documentation.
Delta Company for Fertilizers and Chemical Industries ‘ Financial Manager, Magdy Abd El Fattah, stated that EGAS requested 3 years retroactive dues estimated at EGP 126m. He added that the invoicing period should be amended to 11 months, as EGAS stopped gas supplies to the company during the fiscal year 2014/2015, causing over EGP 147m in loses.
EGAS’ lawyer, Bahaa Abou El Magd, stated that EGAS is working in accordance to Egypt’s sovereign decisions and directives that are issued by the Ministry of Petroleum and approved by the country’s cabinet, and should not be held responsible for loses incurred by other companies.