Egyptian Fertilizer Company Turns to Hydrogen Amidst Gas Shortage

One of Egypt’s largest fertilizer companies said on June 27 it would partially switch to hydrogen supplies as the country struggles with a shortage of natural gas that has led to widespread blackouts.

Abu Qir Fertilizers — along with three other major companies in the fertilizer and chemicals sector, Mopco, Sidi Kerir Petrochemicals, and KIMA — had said this week it would halt production due to the shortage of natural gas, a key input.

The closures coincided with a worsening of regular blackouts that Egyptians have experienced since last year, due to a surge in summer power consumption and the shortage of gas.

Egyptian Prime Minister Mostafa Madbouly blamed the shortage on a production halt in a neighboring country, an apparent reference to Israel, and pressures on dollar resources.

He said earlier this week Egypt would spend more than US$1 billion to import enough gas and mazut fuel oil to end the blackouts this summer.

On June 26, Egypt, the most populous Arab country, awarded a tender to buy 17 cargoes of liquefied natural gas to help meet demand, and is seeking three more cargoes for delivery in August-September, sources familiar with the matter said.

The tender was announced earlier this month, and it is not clear if it was included in the plan announced by Madbouly.

The closures this week are the second time chemical and fertilizer companies have shut plants this month. The first shutdowns came after the government temporarily reduced gas supplies to plants.

However, one of the companies, Sidi Kerir Petrochemicals, said in a stock exchange release on June 27 that its gas supply had resumed, and its plants would restart.