Egypt's fertiliser manufacturers cut production as gas supplies are reduced
Two of Egypt's biggest fertiliser producers announced on Wednesday that they received an official notification about a two week reduction in the natural gas supply at their plants. This triggered a drop in production.
Both Abu Qir Fertilizers and Chemical Industries and Misr Fertilizers Production stated in their stock exchange statements that the expected production to fall by 30% over the period.
Egypt is facing a growing gas shortage ahead of summer peak season. The government is scrambling to secure more gas and fuel oil to meet the surge in demand.
In June of last year, gas cuts similar to those imposed in June were implemented on fertiliser producers. This caused disruptions.
Natural gas is an important input in fertiliser production. Any disruption to the supply can have a negative impact on both domestic revenues and exports.
According to the Joint Organisations Data Initiative, Egypt's natural-gas output has fallen from 4.6 billion cubic meters in January 2024 down to 3.3 million cubic metres in February 2020 - its lowest level since April 2016.
Egypt's Ministry of Petroleum is yet to comment on the reductions.
Egypt is trying to establish itself as an energy hub in the region, but it has had to rely on foreign financing to meet its domestic requirements due to chronic gas shortages. Reporting by Nayera Ezz and Mohamed Abdallah. Mark Potter edited the article.
(source: Reuters)
