Egyptian Fertiliser Company's Hydrogen Transition Amid Gas Shortage
Key Ideas
- Abu Qir Fertilizers and other major companies in Egypt's fertiliser sector plan to partially switch to hydrogen amid a natural gas shortage.
- Egyptian Prime Minister pledges over $1 billion to import gas to end blackouts, highlighting the severity of the energy crisis.
- Chemical and fertiliser plants in Egypt have faced multiple closures due to gas supply issues, impacting production and contributing to blackouts.
- Sidi Kerir Petrochemicals announces the resumption of gas supply, indicating a positive development in the sector's operational challenges.
Amid a natural gas shortage in Egypt that has led to widespread blackouts, one of the country's largest fertiliser companies, Abu Qir Fertilizers, announced plans to partially transition to hydrogen supplies. This decision was prompted by the shortage of natural gas, which also forced other key players like Mopco, Sidi Kerir Petrochemicals, and KIMA to halt production. Egyptian Prime Minister Mostafa Madbouly attributed the shortage to a neighboring country's production halt and currency pressures, committing to spend $1 billion on gas imports to address the crisis. The government has taken steps to alleviate the energy shortage, including awarding tenders to purchase liquefied natural gas and temporarily reducing gas supplies to plants. These closures have exacerbated the ongoing blackouts experienced by Egyptians due to increased summer power consumption. However, there have been positive signs, with Sidi Kerir Petrochemicals announcing the resumption of gas supply to restart their plants. The sector's transition to hydrogen and the government's efforts to secure gas imports reflect a proactive approach to overcoming the challenges posed by the gas shortage and ensuring stable energy supply in Egypt.