The World Bank has approved a US$500m loan for a project aimed to expand natural gas access to 1.5 million Egyptian households in eleven governorates, including three governorates (Sohag, Qena and Aswan) located in Upper Egypt. The Egypt Household Natural Gas Connection Project will support the Egyptian government’s program to replace household consumption of Liquefied Petroleum Gas (LPG), which is mostly imported, with grid-connected natural gas. About 52% of the neighborhoods targeted by the project have poverty rates higher than Egypt’s national average. Currently over 75% of Egypt’s households buy LPG cylinders from an inefficient distribution network characterized by persistent shortages, an informal market, and difficult physical conditions for handling cylinders. By the end of the project the number of households connected to the natural gas grid will increase by more than 40% from 5.8 million to 8.2 million households.
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