Generation: The natural gas exploration and generation activities are carried out in accordance with Petroleum Law. The exploration and operation licenses are granted by the General Directorate of Petroleum Affairs. Generation activities are not regarded as market activities.

Generation companies, provided that they hold a wholesale license, may market the generated gas to wholesale companies, import companies, distribution companies or free consumers. Generation companies are allowed to sell such amount directly to free consumers, as may not exceed 20% of the national consumption forecast to be determined by the EMRA in relation to the current year, and the remaining natural gas to the market through import companies, distribution companies or wholesale companies. Generation companies may export the generated gas provided that they obtain an export license.

Generation companies must satisfy the license requirements for wholesale and export in order to obtain sale and export licenses.

The generated natural gas shall be transported under the transportation and delivery contracts to be executed with the transmission companies. In the event that the generation centre is far from the connection system, generation companies may transmit the generated gas through direct line and sell to the free consumers without the need for the generated gas to form a connected system. However, such a matter depends on the decision of the EMRA to be given by taking into consideration the economical and technical conditions. Furthermore, the generation companies may sell the generated natural gas to other consumers without conducting a distribution activity within the city, if the generation capacity of the generated natural gas is lower 1 million cubic meters.

Wholesale licenses are granted to local and foreign petroleum owner generation companies and to their branches, to sell and to export the generated natural gas to wholesale companies, export companies, distribution companies and to the eligible consumers without the need to obtain a wholesale license.