The Ministry of Petroleum and the Ministry of Electricity are once again on a collision course over gas supplies to power stations. A state of confusion took over the electricity and energy sector for fears there would not be enough gas to activate the 11-megawatt power stations in the 2012/2017 five-year plan. Officials at the Ministry of Electricity said the Holding Company sent the plan to the Petroleum Sector, but the latter did not reply. They pointed out that a joint committee has been formed by the two ministries to find a solution to this problem. They also indicated that the Ministry of Petroleum put off giving its green light to the quantities requested. The Ministry, according to these officials, justified its position by saying that there were problems in gas production and that the Egyptian Gas Holding Company (EGAS) could not set a timetable to supply the stations with gas. The officials added that the Ministry of Petroleum has totally rejected using part of the supplies of Southern Egypt gas line to activate the power stations, due to be set up in the areas of el-Murashida (Qena Governorate) and el-Maymoun (Beni Suef). The Ministry justified its position by saying that the line is basically designed to supply factories and houses only with gas and that it would be too much for it to be used to fuel electric plants. The sources went on to say: "We have received a stern warning from the officials of the Ministry of Petroleum to stay away from Southern Egypt gas line." Dr. Hassan Younis, Minister of Electricity, told Al-Masry Al-Youm that a joint committee has been formed by the two ministries to discuss the situation. He also explained that negotiations are still underway. The sources unveiled that an UAE-Libyan company has pulled out of the negotiations it was holding with the Electricity Sector to invest in the establishment of the first phase of el-Maymoun 1,300-megawatt steam plant in Beni Suef. The investments were expected to reach LE 12 billion, but the company eventually withdrew due to the uncertainties concerning gas supplies. Dr. Mohamed Awad, Chairman of the Egyptian Electric Holding Company (EEHC), said that the Electricity Sector cannot pay all its debts to the Ministry of Petroleum due to its annual LE 7 billion financial deficit resulting from the difference between expenses and entries.
