The Egyptian Chemical Industries (KIMA), a listed fertilizer producer, has reduced its natural gas intake by 20% starting November 1 following a directive from its gas supplier, according to a disclosure to the Egyptian Stock Exchange (EGX).

The company noted that its urea plant continues to operate normally adding that it is currently assessing the impact of the reduced gas supplies on its operations and will disclose the findings once the assessment is completed.

The government has previously reduced natural gas supplies to energy-intensive industries as part of a broader effort to curb imports. The spiraling surge in international oil and gas prices following the US-Iran conflict is increasing Egypt’s energy import bill.

Established in 1956 in Aswan, KIMA operates in the production of nitrogenous fertilizers and chemical products, including urea, ammonia, and ammonium nitrate.

Its KIMA 2 complex is designed to produce 1,220 tons of ammonia per day (t/d), of which 900 tons are used to manufacture urea at the new KIMA plant, with an annual production capacity of 570,000 tons. The remaining 300 tons of ammonia are supplied to the old plant to produce 120,000 tons of low- and high-density ammonium nitrate and 100,000 tons of nitrogen fertilizers annually.