Syria buys Egypt gas at oil-linked price

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.