The Oil Ministry is looking into allocating three LNG shipments per month to fertilizer and petrochemical factories for four months starting in July, government sources told Al Arabiya. Each shipment is expected to carry between 70k-90k cbm of LNG, and the factories would cover their cost.

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REFRESHER- After having their gas supply cut by 50% for a 15-day period — during which imports of Israeli gas were cut by 20% due to scheduled maintenance — fertilizer manufacturers submitted a formal request to the government to import natural gas directly from global markets last month. Some producers said the lower gas supplies would lead to a 30% drop in production.

Fertilizer producers formally asked the Egyptian General Petroleum Corporation to import additional shipments on their behalf under its existing contracts, two sources in the fertilizer sector told EnterpriseAM, citing the corporation’s ability to secure more competitive prices. The move is still under study and is yet to be greenlit, our sources said.

The proposal includes full payment in USD for the shipments, freight, and liquefaction costs, our sources added.

Despite recent improvement, gas flows to fertilizer and petrochemical factories are still down, with the two sectors receiving 450-500 mn cubic feet per day (mcf/d) since the start of this week — well below the 770 mcf/d the sector typically requires, Al Arabiya’s sources added. Deliveries partially resumed on Saturday after a two-week disruption, Egyptian Chamber of Chemical Industries head Sherif El Gabaly told Al Arabiya.

REMEMBER- The Oil Ministry is planning to spend up to USD 2.5 bn to import 60 LNG shipments through early September to meet the expected high electricity demand during the summer period.

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