A source at the petroleum ministry revealed to Egypt Oil & Gas that the quantities of diesel and fuel oil pumped to power plants  will be redirected to build up the strategic reserves.

This move comes in light of the expected reduction in electricity demand during the winter months.

Egypt mainly relies on natural gas to generate electricity, consuming around 90% of the country’s production of natural gas, adding imported petroleum derivatives to the mix to generate the remainder of the country’s power needs.

The decreased demand in the coming months will push the power sector’s consumption of natural gas down to 60%, making power generation process no longer reliant on imported petroleum derivatives.

The source clarified that a decision was taken to provide all the quantities of diesel fuel originally earmarked for power generation to the enhancement of the country’s strategic reserve of petroleum derivatives to last up to 25 days during times of crisis.

He added that a number of factory owners were still wary of coal as an alternative to gas, as it causes blockages in internal pipelines and increases maintenance operations.