Egyptian fertilizer producers report marginal impact after natural gas supply reductions

Ahram Online , Wednesday 2 Aug 2023

Seven Egyptian fertilizer manufacturers reported a marginal to moderate impact on operations following the Ministry of Petroleum's decision to reduce natural gas supplies to fertilizer factories by 20 percent, according to filings to the Egyptian Exchange (EGX) on Tuesday and Wednesday.

Worker applying fertilizers to a land. Ahram Gate.
Worker applying fertilizers to a land. Ahram Gate.


The Financial and Industrial Egyptian Company, El-Dawlia Fertilizers and Chemicals (ICFC), FerchemMisr for Fertilizers and Chemicals (FERC), Misr Fertilizers Production Co SAE (Mopco), and SamadMisr (Egyfert) reported marginal impact on their operations.

The companies said the petroleum ministry's decision was targeting factories producing nitrogen fertilizers, which use heavy amounts of natural gas, adding that they are not producing these types of fertilizers. 

Meanwhile, Egyptian Chemical Industries (Kima) reported that its ammonia production has declined by 20 percent, which was compensated for by the company's storage.

Ammonia is used to produce nitrogen fertilizers through a chemical reaction with acids.

Abu Qir Fertilizers and Chemicals Industries Company reported a 10 percent decline in the natural gas supply to its factories, noting that it is rationing energy consumption in response.

Egypt produces about 23 million tons of different types of fertilizers, of which it consumes 10 to 12 million tons.

According to the Central Agency for Public Mobilization and Statistics (CAPMAS), Egypt exported $3.3 billion in fertilizers in 2022, up by 50.2 percent from $2.2 billion in 2021.

Egypt expects to produce about eight million tons of LNG in 2023 after discovering a new gas field in the Nargis area in January.

The country's LNG exports increased by 14 percent year-on-year to 7.5 million tons in 2022.

Last year, Egyptian Prime Minister Mostafa Madbouly announced that over 60 percent of Egypt’s natural gas production goes to power stations to generate electricity. 

The Egyptian government is applying a temporary nationwide plan to reduce electricity loads amid increased consumption due to the heat wave. Power cuts in each district are scheduled at specific times according to the plan.

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