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Egyptian factories seek 17% rise in gas supply to recover losses

Mahmoud Salem
Published Wednesday, July 2, 2025 - 17:03

Factories across Egypt have called for a 17% increase in their daily natural gas allocations to compensate for losses suffered during last month’s suspension of Israeli energy exports, a source at the Ministry of Petroleum told Al Manassa.

“Some factories operated with just one production line in recent days. Now, all lines require more gas to exceed 85% of their target capacity,” said the source, who requested anonymity. The requested increase amounts to nearly 100 million cubic feet per day.

Gas supplies were disrupted following the outbreak of military conflict between Israel and Iran in June, prompting Israel to halt exports to Egypt. The suspension hit Egypt’s fertilizer plants particularly hard, contributing to a surge in local product prices.

Supplies have resumed incrementally since June 26, as regional tensions eased.

The source said Egypt now receives over 1 billion cubic feet of gas daily from Israel, enabling the Egyptian Natural Gas Holding Company (EGAS) to allocate an additional 70 to 80 million cubic feet per day to industrial clients. Currently, factories consume about 600 million cubic feet of gas daily.

Of that amount, fertilizer and petrochemical sectors receive 30% to 35%, they added.

EGAS expects factory demand to exceed 800 million cubic feet per day in the third quarter of 2025. To meet this surge, the petroleum ministry plans to secure more liquefied natural gas (LNG) shipments—beyond the five or six tankers received monthly in the second quarter.

As part of its 2025-2026 fiscal strategy, EGAS aims to operate five floating regasification units to handle increased summer demand, when household consumption typically peaks due to high temperatures.

Egypt’s domestic gas production currently stands at about 4.2 billion cubic feet per day, while total national consumption exceeds 6.3 billion—leaving a gap of over 2 billion cubic feet.

“EGAS recently received a new LNG shipment at Ain Sokhna port, which was transferred to the Hoegh Gallant regasification vessel. This shipment will supply about 350 to 400 million cubic feet per day for up to a week,” the source added.

The source emphasized EGAS’s commitment to ensuring stable gas supplies for industry. “We’re working to maintain production flows and support economic targets,” they said.