Abu Qir Fertilizers said last week it would partially switch to hydrogen supplies to slightly compensate for the natural gas shortage. Image by Abu Qir Fertilizers Abu Qir Fertilizers will gradually resume operations at its three Egyptian plants a week after suspension, as natural gas supplies have resumed, the state-run firm said in a disclosure to the Egyptian Stock Exchange on Tuesday.
Gas shortages The company temporarily ceased operations twice in June following the Ministry of Petroleum and Mineral Resources' decision to cut gas supplies for fertilizer companies and redirect the gas to electricity grids to cope with high temperatures and a surge in electricity demand.
Abu Qir Fertilizers, a leading producer in Egypt, manufactures various fertilizers and chemical materials, including those necessary for the production, packaging, purchase, and sale of chemical fertilizers and related products.
Last week, the company said it would partially switch to hydrogen supplies to slightly compensate for the natural gas shortage.
The intense heatwave in Egypt has strained gas reserves due to a significant rise in energy consumption, coinciding with the stoppage of some regional gas supply sources, the company explained last week.
Egyptian Prime Minister Mostafa Madbouly attributed the shortage to a production stop in a neighboring country, likely referring to Israel, and challenges with dollar resources.
Last week, three other major companies in the fertilizer and chemicals sector—Mopco, Sidi Kerir Petrochemicals, and KIMA—announced they would halt production due to the shortage of natural gas.
Electricity crisis Egypt is grappling with an electricity crisis and a natural gas supply shortage, with temperatures exceeding 40 degrees Celsius in several cities, leading to frequent power outages. These conditions are impacting the operational environment for companies.
Last week, Egypt awarded its largest tender in years to purchase 20 cargoes of liquefied natural gas (LNG) to help meet summer demand, Reuters reported, citing sources familiar with the matter.
