Egypt Daily News – In a significant move aimed at stabilizing industrial production and meeting rising domestic energy demands, the Egyptian government has resumed natural gas supply to fertilizer plants across the country at full capacity starting Sunday, according to government officials who spoke to Asharq News on condition of anonymity.
The decision follows the activation of Egypt’s second and third floating storage regasification units (FSRUs) at Ain Sokhna port late last week. These units are key to converting imported liquefied natural gas (LNG) back into its gaseous state to supplement the country’s energy grid, especially amid soaring summer electricity demand.
According to one senior official, the restored gas flow is intended to ensure both the full operational capacity of fertilizer production facilities and the consistent generation of electricity. “Stabilizing gas supply to fertilizer plants is critical not only for the local agricultural market but also for fulfilling the plants’ export commitments,” the official said.
Egypt had previously slashed natural gas allocations to fertilizer and methanol factories by 50% starting mid-May, following disruptions caused by the outbreak of conflict between Iran and Israel and the subsequent shutdown of one of Egypt’s main gas import pipelines. The reduction in gas supply had led to production slowdowns and mounting pressure on both local and international fertilizer contracts.
With domestic gas production declining in recent months, Egypt has resumed LNG imports for the first time since 2018. The country had suspended gas imports following the discovery of major natural gas fields, most notably the Zohr field, which briefly enabled Egypt to achieve self-sufficiency in energy.
To accommodate the rising summer demand, electricity generation has surged, consuming around 3.9 billion cubic feet of gas per day. Meanwhile, the industrial sector, including heavy consumers such as fertilizer and petrochemical plants, requires approximately 2.1 billion cubic feet per day. Fertilizer and petrochemical industries alone account for 35% to 40% of the gas consumed by the industrial sector, which represents about 25% of Egypt’s total daily gas consumption.
While the Ministry of Petroleum has not officially commented on the development, local producers have already expressed optimism. Abu Qir Fertilizers, one of Egypt’s largest producers, expects to resume full production capacity imminently, according to sources within the company.
In contrast, Egypt has reportedly halted gas exports to Jordan to prioritize domestic consumption. The strategic reallocation of energy resources reflects the government’s efforts to balance critical needs across electricity generation, industrial output, and economic exports, particularly in the context of a strained global energy environment.
As the region continues to grapple with geopolitical uncertainty and fluctuating fuel supplies, Egypt’s energy management strategies are increasingly being shaped by both domestic imperatives and international pressures.
