The Egyptian Natural Gas Holding Co. signed an agreement allowing it to increase the price of natural gas sold to Union Fenosa SA, to reflect soaring global crude prices, an official for the Egyptian company said.
The two companies also agreed to eliminate the upper limit on prices, said Enas El Sheikh, general manager at the Egyptian companyís information department.
Union Fenosa, a unit of Barcelona-based Gas Natural SDG SA that holds a 50 percent share of a gas-liquefaction plant in Egypt, didnít reply to an e-mail seeking comment.
The Egyptian state-run company, known as EGAS, is also negotiating to increase the price of natural gas it sells to Jordan, El Sheikh said.
Egypt has 77 trillion cubic feet (2.18 trillion cubic meters) of gas reserves and is the main producer of the fuel in the eastern Mediterranean, according to the U.S. Energy Department. The country exported 650 billion cubic feet in 2009, 30 percent of which went by the Arab gas pipeline to Jordan, Syria and Lebanon, or via the El Arish-Ashkelon line to Israel, according to the department.