Egypt cuts natural gas supply to fertilizer companies

Egypt's Ministry of Petroleum and Mineral Resources, represented by the Egyptian Natural Gas Holding Co. (EGAS), informed fertilizer companies in Egypt of a reduction in natural gas supplies by 20% to 30%, Al Arabiya Business reported, citing informed sources.

The sources indicated that EGAS decided to halt operations at some of its factories until further notice. Two companies in the Egyptian fertilizer industry will close one factory each out of the three they own, while their remaining factories will receive about 80% of their natural gas needs in the coming days.

The decision to reduce gas quantities will apply to all fertilizer companies operating in the Egyptian market until necessary gas quantities are secured for energy-intensive factories, as the fertilizer industry heavily consumes natural gas, a key production input, the sources added.

According to the officials, EGAS stopped supplying gas to petrochemical company factories on May 21 for 11 days before resuming gas supply at varying rates.

Officials said that the decision to reduce gas supplies is part of the Ministry of Petroleum's plan to provide the necessary fuel – gas and diesel – to operate power plants, increase production, and counter the rise in consumption due to higher temperatures.