Egypt is in talks to offer higher prices for the natural gas it buys from its foreign energy partners to encourage more investments in its hydrocarbon sector, the country's oil minister said in an interview broadcast on state-owned television.

"We've recently started negotiations with our foreign partners to modify the gas prices we pay them…in order to allow them to achieve suitable returns on their investments," Sherif Ismail told Nile News Channel in an interview posted on the channel website Sunday.

Egypt currently pays around $2.65 per million British thermal units produced by foreign energy firms operating in the country, which is far lower than international prices, Mr. Ismail explained.

"This price could be suitable for gas extracted from the Western Desert or the Nile Delta, but it is low for the deep waters area because of the higher operational costs," he said, but didn't say how much Egypt is going to offer its foreign partners.

Egypt has faced a natural gas and diesel shortage since last year, which has pushed up food costs, seen long lines at filling stations and electricity blackouts. The energy-supply problems have deepened popular discontent with Egypt 's former ruling Islamist government and exacerbated broader economic difficulties there.

The country has frozen talks to import liquefied natural gas from wealthy Qatar due to political instability and violence that erupted after the army swept the streets of the supporters of ousted President Mohammed Morsi in August. The country is struggling to provide acceptable bank guarantees that would facilitate the flow of energy supplies, people familiar with the talks have previously said.
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