Procedure for the Securing of Natural-Gas Prices for Certain Industrial Sectors

The Minister of Energy and Mineral Resources (“Minister”) has issued Regulation No. 16 of 2016 on the Procedure for Determining Prices for Certain Natural-Gas Users (“2016 Regulation”).The 2016 Regulation aims to set out procedures for certain businesses as regards the purchase of natural gas at specific prices determined by the Minister, as mandated by Presidential Regulation No. 40 of 2016 on the Determination of Natural-Gas Prices (“Presidential Regulation”). [1] The Regulation is of particular relevance to producers of natural gas, as well as to industries which utilize natural gas.Specific Natural-Gas PricePursuant to the Presidential Regulation, the Minister is authorized to set a specific natural-gas price (“Specific Natural-Gas Price”) for certain business sectors, provided that both of the following conditions are met: [2]