Egypt's fertiliser producers cut output as gas supplies slashed

Zawya

21-05-2025

Two of Egypt's largest fertiliser producers said on Wednesday they had received official notification of a two-week reduction in natural gas supply to their plants, triggering an immediate drop in production.
Abu Qir Fertilizers and Chemical Industries and Misr Fertilizers Production both said in stock exchange statements that they expected output to drop by 30% during the period.
The cuts come as Egypt faces growing gas supply challenges ahead of the peak summer season, with the government scrambling to secure additional gas and fuel oil cargoes to meet surging demand.
Similar gas supply cuts were imposed on fertiliser producers in June last year, disrupting operations.
Natural gas is a key input for fertiliser production, and any disruption can impact both domestic supply and export revenues.
Egypt's natural gas output fell from 4.6 billion cubic metres in January 2024 to 3.3 billion cubic metres in February 2025 - the lowest since April 2016, according to the Joint Organisations Data Initiative.
Egypt's Ministry of Petroleum has not yet commented on the reductions.
Egypt has been working to position itself as a regional energy hub, but chronic gas shortages forced it to become a net importer, enforce rolling blackouts, and rely on foreign funding to meet its domestic needs.
(Reporting by Nayera Abdallah and Mohamed Ezz. Editing by Mark Potter)