EL7.AI
CommoditiesMedium•9 November 2026•
3 min read

36% Rise in Asian LNG Index Deepens Gas Supply Cuts to Egyptian Plants

Key Facts

1The Asian LNG index rose by about 36% month on month in October, exceeding $34 per million British thermal units at the end of the month.
2The government postponed 5 of the 15 cargoes contracted for November; a spot cargo cost about $120 million.
3Fertilizer plants consumed 207.7 billion standard cubic feet of gas in fiscal year 2024/25, accounting for about 39% of industrial consumption.
4Granular urea was priced at about $535 a ton under November contracts, up nearly 17% from September.

Misr Fertilizers Production Company (MOPCO) is managing production operations according to available gas volumes, as the government deepened gas supply cuts to fertilizer and methanol plants, according to a report by EnterpriseAM. The company said the arrangement is intended to ensure continued operations, without disclosing the impact on production. The move comes as the government faces higher costs for imported liquefied natural gas. EnterpriseAM reported that the Asian LNG index rose by about 36% month on month in October. Managing production according to available volumes shows how fuel rationing is affecting plant operations, while the government has not specified when the cuts will end.

The Asian LNG index exceeded $34 per million British thermal units at the end of October, compared with about $25 at the end of September, according to EnterpriseAM. As prices rose, the government postponed five of the 15 cargoes contracted for November, the report said. EnterpriseAM estimated the cost of a single spot cargo at about $120 million, citing a government official. Postponing cargoes and reducing industrial supplies leaves the country weighing the cost of securing fuel against the needs of energy-intensive sectors. The report did not specify when the postponed cargoes would resume or how long rationing measures would remain in place.

The fertilizer sector is central to the decision because of its heavy gas use in Egyptian industry. Fertilizer plants consumed 207.7 billion standard cubic feet in fiscal year 2024/25, equivalent to about 39% of industrial gas consumption, according to data cited by EnterpriseAM. In the same period, iron and steel consumption reached 82.4 billion cubic feet, or about 15% of the industrial total. The Petroleum Ministry said in June 2026 that gas was a key input for fertilizer production and that it was committed to meeting plants’ needs. The ministry added at the time that regular supplies had lifted fertilizer plant operating rates to more than 90% over the past year.

In August 2026, the agriculture and petroleum ministries said supplies of gas to meet fertilizer plants’ needs would continue in the required volumes, and that regular deliveries during 2025 and 2026 had supported operations, production and exports. That statement came before the current cuts, while MOPCO has now said its operations and production are being managed according to available volumes. In the product market, granular urea was priced at about $535 a ton under November contracts, up nearly 17% from September, according to EnterpriseAM. The report did not say whether the higher price would offset any potential decline in production or exports. The government has also not announced when the cuts will end or how far rationing might extend to other industrial sectors.