Egyptian firms respond to natural gas shortage amid high energy demand

(MENAFN) Abu Qir Fertilizers Company announced its plans to gradually resume operations at its factories following the restoration of natural gas supplies, as disclosed to the Egyptian Stock Exchange on Tuesday. This decision comes in response to a recent halt in operations due to a shortage of natural gas, impacting not only Abu Qir Fertilizers but also other major companies like Mobco Fertilizers and Kima. The shortage was exacerbated by increased energy demand in Egypt, driven by soaring temperatures.

Egyptian Prime Minister Mostafa Madbouly attributed the gas supply shortfall to production halts in neighboring countries and intensified pressure on dollar resources. Last week, Madbouly announced Egypt's commitment to spend over USD1 billion on importing additional natural gas to mitigate power outages expected during the summer months.

In response to the urgent energy needs, Egypt recently awarded a significant tender to import liquefied natural gas (LNG), totaling 20 cargoes, marking one of the largest purchases of seaborne fuel to date. This move aims to cover the anticipated high demand from July through September, ensuring sufficient energy supply across the country.

Furthermore, Sidi Kerir Petrochemicals Company disclosed on Monday its strategic plans to form a consortium of Egyptian companies. This alliance seeks to import American shale gas amidst local supply shortages, which contributed to factory shutdowns and prolonged power outages in residential areas across Egypt last week. The initiative underscores Egypt's proactive measures to diversify its energy sources and enhance resilience in the face of fluctuating domestic natural gas availability. 

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