State-owned Misr Fertilizers Production Company (MOPCO) suspended operations at its three plants due to a gas supply shortage. This move addresses pressure on the gas network’s reserves, according to a disclosure to the Egyptian Stock Exchange on Tuesday.
The company cited unprecedented energy consumption from the ongoing heatwave, surpassing normal seasonal levels. This surge, combined with interruptions in regional gas supplies, significantly depleted the network’s gas reserves.
“To prevent damage to our plants, gas supply has been halted until the network’s operating conditions improve,” MOPCO stated. The shutdown is temporary, contingent on improved gas network conditions.
Founded in 1998 in the Damietta Public Free Zone, MOPCO is Egypt’s largest nitrogen fertilizer producer, with a capital exceeding EGP 2.5 billion. Other fertilizer companies have also halted operations, citing the heatwave’s strain on the natural gas network.
In June, the Egyptian government reduced natural gas supply to fertilizer companies, redirecting it to power generation to mitigate electricity outages. The government has implemented a nationwide load-shedding scheme due to the heatwave’s impact on domestic electricity consumption.
Prime Minister Madbouly explained that a stoppage at a neighboring country’s gas station caused a temporary natural gas shortage in Egypt. To combat power cuts, the government will import mazut and natural gas worth $1.18 billion from mid-July to the end of summer.
According to Reuters, Egypt’s petroleum ministry announced that gas supplies would gradually resume to fertilizer factories starting Thursday.
