Fertilisers producers to hold talks with Minister of Trade and Industry on implementing a natural gas price formula linked to urea prices
According to an article in Al Borsa newspaper, Egyptian fertilisers producers will be meeting with the Minister of Trade and Industry to discuss the implementation of a price formula for natural gas consumption. According to a source at Alexfert, a subsidiary of Egyptian Kuwaiti Holding (EK Holding)[EKHO.CA], the new price formula will establish a minimum gas price of USD4.5/mmbtu assuming urea prices hold at USD250/tonne, while the gas price will increase by USD0.01/mmbtu for each increase of USD1/tonne of urea. (Al Borsa) Egyptian Kuwaiti: USD0.48 as of 17 March 2016, Rating: Buy, FV: USD0.80 per share, MCap: USD492 million, EKHO EY / EKHO.CA
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