Fertilizer Factories Demand Gas From Ministry After Production Stoppages

Fertilizer Factories Demand Gas From Ministry After Production Stoppages

Muhammad Fayez, director of a fertilizer factory in Helwan, said that a comprehensive memorandum will be sent to the Ministry of Petroleum with all the gas needs of fertilizer factories for the current summer period.  This came after a number of small factories ceased production thanks to gas shortages that resulted from full gas production being diverted to power plants to prevent power cuts to citizens homes.

In exclusive statements made to Egypt Oil & Gas Fayez explained that the memorandum will include a request to supply fertilizer factories with 50,000 cubic meters of gas per month. This is just 75% of normal factory consumption rates, until the current summer finishes, with the remainder to be compensated via joint import operations by EGAS.

He also made it clear that fertilizer factories will sell all their products in local markets, not abroad, and so they are entitled to obtain subsidized gas considering how high gas prices are in global markets.

For their part, a source at the Petroleum Ministry said that they would review these demands and gas would be supplied in accordance with the electricity distribution schedule. This is because the ministry has top directives that electricity production be prioritized, with only the remainder of gas going to the industrial sector.

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