Egypt cut gas supplies to fertilizer producers by 33%

The new measure became known from a company statement and from industry representatives. Earlier, industry enterprises had already faced a 20% reduction in gas supplies.

This decision was made against the backdrop of the country's drive to reduce the need for expensive imports of liquefied natural gas. Egypt depends on its own gas and LNG supplies for electricity generation, but local production is not keeping pace with growing demand. The situation in global LNG markets has worsened and prices have risen amid the war in Iran.

Following the announcement of the previous supply reduction, MOPCO and Abu Qir Fertilizers and Chemical Industries stated that they would adjust production in accordance with available gas volumes. Abu Qir also reported having contingency plans to manage inventories and reschedule maintenance.

In addition, the country has increased purchases of cheaper fuel oil. Last month, the state-owned Egyptian General Petroleum Corporation acquired six cargoes of high-sulfur fuel oil for delivery in November and December.