CAIRO, Nov 8 (Reuters) – Egyptian fertilizer companies have been informed of a new 33% cut in their natural gas supplies, as stated by a company report and industry officials on Sunday. This move is part of the country's effort to reduce reliance on costly liquefied natural gas (LNG) imports.
Misr Fertilizers Production Company (MFPC) confirmed it received notice of this reduction, which follows a previous 20% decrease in gas supplies to fertilizer plants.
Egypt relies on both domestic natural gas and increasingly on imported LNG for energy. However, local production hasn't been able to keep up with growing demand. The ongoing conflict in Iran has affected global LNG markets and raised prices.
When the first reduction was announced, MOPCO and Abu Qir Fertilizers and Chemical Industries said they would adjust their production based on the gas available. Abu Qir mentioned that they have plans in place to handle inventory and reschedule maintenance.
The Petroleum Ministry has not responded yet to requests for comments.
Additionally, the country has increased its imports of cheaper fuel oil. The state-run Egyptian General Petroleum Corporation has purchased six shipments of high-sulfur fuel oil for delivery in November and December, according to trading sources.
Related Article: Dirty Fuel’s Big Comeback: HSFO Prices Spike as Ships Reroute from Red Sea Risks
LNG imports have increased this year, reaching their highest level in July before they started to decline in August.
The ministry has allocated around $10.1 billion for LNG in the 2026/27 financial year, but an analyst noted in October that prices have exceeded those estimates. By October 6, $5.8 billion had already been spent, indicating the budget may be exceeded before demand typically rises in spring and summer.