Egypt cuts gas supplies to fertiliser makers by 33% to curb LNG imports
Key Facts
Egypt has notified fertiliser producers of a new 33% cut in natural gas supplies, Reuters reported on November 8, in a move aimed at reducing the need for costly liquefied natural gas imports. The decision follows an earlier 20% reduction in supplies earlier in November. Reuters said the notice covered Egyptian fertiliser producers generally and named MOPCO as the company that confirmed receiving notice of the new cut. The decision leaves plants with less gas, a key input for operating the fertiliser sector, as Egypt seeks to limit its LNG import bill. The report gave no figure for losses or the volume of production affected.
As for Abu Qir Fertilisers, the company posted a disclosure dated November 8 on its investor relations page titled "Increase in the percentage cut to natural gas supplies to fertiliser plants." The page also showed an earlier disclosure, dated November 3, titled "20% cut to natural gas supplies to fertiliser plants." But a report published by Enterprise AM on November 9 said Abu Qir had pointed to contingency plans to manage inventory and reschedule maintenance, without saying that the company had confirmed receiving a 33% cut. The title published on the company’s page alone therefore does not establish the size of the cut applied to Abu Qir on that date. The 33% figure in Reuters’ report remains tied to fertiliser producers generally, while confirmation of the notice was attributed to MOPCO.
Enterprise AM said Abu Qir had pointed to precautionary measures including inventory management and rescheduled maintenance, but gave no figure for losses. The coverage said none of the three companies discussed in the report had announced an estimate of losses. In a separate disclosure on the latest restrictions, MOPCO said it was adjusting operations to match available gas volumes while maintaining business continuity. These measures show how the company is responding to lower allocations, but do not specify how much production or sales might change. Abu Qir’s disclosure of contingency plans also does not establish that maintenance was rescheduled specifically in response to a 33% cut.
The supply reduction comes as Egypt’s reliance on imported LNG has risen over the year, according to a Reuters report, which said imports reached their highest level since the start of the year in July before beginning to decline from August. Egypt’s budget allocated about $10.1 billion for LNG in the 2026/2027 fiscal year. Spending on LNG reached $5.8 billion through October 6, according to an analyst quoted by Reuters. The scale of the allocations and spending provides context for the aim Reuters attributed to the supply cut: reducing the need to buy costly LNG cargoes. The sources did not attribute the decision to a specific government austerity package.
In a parallel effort to boost domestic supply, Egypt’s Petroleum Ministry said in September that it aimed to add about 330 million cubic feet of gas to domestic output before the end of 2026, from fields in the Mediterranean and Western Desert. The ministry broke down the target into about 250 million cubic feet per day from the Zohr and West Mena fields before year-end, and about 80 million cubic feet per day from the Meleiha fields before the end of September. These plans link higher domestic production with easing import pressure, but remain targets announced for the specified periods. Alongside gas, the Egyptian General Petroleum Corporation bought six cargoes of high-sulphur fuel oil for delivery in November and December, Reuters reported, as it turned to lower-cost fuel imports. The available sources did not estimate the effect of these measures on plant supplies or losses.