Many chemical and fertilizer companies in Egypt have temporarily and precautionarily suspended work in their factories, due to increasing pressures resulting from consumption on the natural gas network, which has led to instability in the network.
The Egyptian Kuwaiti Holding Company, Misr Fertilizer Production Company (MOPCO), and Abu Qir Fertilizers and Chemical Industries Company said that they will stop working for 24 hours, until the pressure in the network stabilizes.
The Egyptian Chemical Industries Company (KEMA) and the Sidi Kerir Petrochemical Company did not specify a timetable for stopping.
Meanwhile, the Ministry of Petroleum and Mineral Resources said on Wednesday that gas supplies to fertilizer factories will gradually return, starting tomorrow, following a temporary measure taken yesterday to reduce supplies.
The Ministry explained in a statement that the fertilizer companies’ share of the gas was directed to power generation plants in light of the preventive maintenance work on the networks.
The Ministry – and the Ministry of Electricity – also announced the completion of the procedure to reduce electrical loads for an additional hour, which was limited to yesterday only, in light of preventive maintenance work for part of the regional gas circulation networks with the increase in electricity consumption rates as a result of rising temperatures.
The Ministry confirmed that things had returned to normal, and that the measure was necessary to maintain the operational efficiency of the electricity transmission network and the natural gas network.
Reducing loads
Yesterday, Tuesday, the Ministries of Petroleum and Electricity in Egypt announced an increase in the period of power outages across the country by an additional hour for the same day only, “to coincide with some preventive maintenance measures in part of the regional gas trading networks with the increase in local electricity consumption rates as a result of rising temperatures.”
Temperatures rose yesterday to nearly 40 degrees Celsius in Cairo, and are expected to rise further over the next few days.
Supplies of natural gas, which helps Egypt generate electricity, have declined at a time when demand for electricity has increased due to population growth. The government has heavily subsidized energy prices for years.
Egypt began cutting off electricity for an hour a day last summer, and the period increased to two hours at the beginning of this summer.
The country has also faced a shortage of foreign currency needed to facilitate gas imports during the past two years.
Egypt has been seeking to reduce its support bill since signing a financial support package with the International Monetary Fund worth $8 billion last March.
