Business | Oil & Gas

Syria buys Egypt gas at oil-linked price

Syria began buying natural gas by pipeline from Egypt at a price linked to the cost of oil, the Al Alam Al Yom newspaper reported.

  • Bloomberg
  • Published: 23:29 July 11, 2008
  • Gulf News

London: Syria began buying natural gas by pipeline from Egypt at a price linked to the cost of oil, the Al Alam Al Yom newspaper reported.

The gas price is $5 a million British thermal units when the price of Brent crude is $30 a barrel, the newspaper said, citing unidentified people familiar with the matter.

Al Alam Al Yom said deliveries of the fuel will start at 2.5 million cubic metres a day and will increase to six million cubic metres a day in the first year.

Egypt is bearing a $2 per million Btu cost of transporting the fuel through Jordan and Syria, the newspaper said.

Syria needs Egyptian gas as its own production cannot meet local demand, Al Alam reported.

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