EGYPT · ENERGY
Egypt cut the natural gas it supplies to fertilizer plants by 33% from Sunday 8 November, up from 20% a week earlier. Misr Fertilizers Production Company (Mopco), a urea maker, said it had been notified of the new reduction, according to Egypt Oil & Gas, an energy industry news site, on 8 November, and Reuters (the news agency) reported the same day that fertilizer producers had been notified of a new 33% cut.
Urea is a nitrogen fertilizer traded around the world, and Egypt can make about 6.5 million tonnes a year and uses 2.9 million at home, EnterpriseAM, an Egyptian business newsletter, reported on 9 November. For US readers the link is price: the same report put granular urea at about US$535 a tonne FOB (free on board, before shipping) for November contracts, up roughly 17% from September.
Key Facts
- Cut Fertilizer maker Mopco says its gas supply fell 33% from Sunday 8 November, after 20% a week earlier.
- Why Domestic output has not kept pace with demand, so Egypt leans on imported liquefied natural gas (LNG).
- Steel A reported 30% gas cut for steelmaker Ezz Steel has no company confirmation.
- Ministry The Petroleum Ministry did not immediately respond to a request for comment on 8 November.
- Unknown No end date has been given for the rationing.
What Happened on 8 November
Mopco, with annual capacity of about 2 million tonnes, said its operations are being managed in line with the available gas, according to Egypt Oil & Gas. Reuters reported that producers were told of the new cut and that Abu Qir Fertilizers, another producer, said it had contingency plans for managing inventory and rescheduling maintenance.
Egypt Oil & Gas reported on 9 November that Abu Qir disclosed a 33% cut effective 8 November and is running two of its three plants at full capacity. EnterpriseAM said Abu Qir had confirmed only 20%, so the two accounts of Abu Qir differ.
Kima (Egyptian Chemical Industries), a fertilizer maker, has confirmed only the 20% cut that began on 1 November, in its latest disclosure to the Egyptian Exchange (EGX), the stock exchange, EnterpriseAM reported. The same report said none of Mopco, Abu Qir and Kima had put a figure on its losses.
Why Egypt Is Rationing Gas
Egypt relies on domestic gas and, increasingly, on imported LNG, but domestic output has struggled to keep pace with demand, Reuters reported. The same report put the Petroleum Ministry’s LNG budget for the 2026/27 financial year at about US$10.1 billion, and said the ministry did not immediately respond to a request for comment on 8 November.
JKM, the Asian benchmark price for LNG, rose about 36% in October to more than US$34 per million British thermal units, from about US$25 at the end of September, according to EnterpriseAM. A government official told EnterpriseAM that one spot LNG cargo now costs close to US$120 million, and that the government has deferred 5 of the 15 cargoes contracted for November.
A Steel Cut Reported but Not Confirmed
EnterpriseAM reported that Ezz Steel, a major Egyptian steelmaker, was told of a 30% gas cut of about 30 million cubic feet a day, citing Asharq Business, an Arabic-language business news service, which cited government officials. The company itself has not confirmed it in anything we found.
Hassan El Marakby, head of El Marakby Steel, a steel producer, said nothing formal had reached the mills and that he had no confirmation of the reported cut, by EnterpriseAM’s account. We therefore treat it as a report, not as an established fact.
What It Means for You
Fertilizer exports earned US$2.53 billion in the first nine months of 2026, EnterpriseAM reported, so output cuts affect a product that earns foreign currency. Egypt also supplies a global market, and a tighter urea supply can lift prices for buyers anywhere, though no price move since 8 November has been reported.
Readers following Egypt’s economy can compare this with Egypt’s October inflation reading, the freeze on fuel prices and the debate over the rate hike and the budget. More Egypt coverage sits on our Egypt news page.
What Is Not Known
No end date has been given for the gas cuts, and the Petroleum Ministry did not immediately respond to a request for comment on 8 November. Sources differ on whether Abu Qir faces a 33% or a 20% cut, and no company has said how much output it lost.
What to Watch Next
The first signal is whether Kima’s next EGX disclosure shows the higher cut. The second is whether the ministry sets an end date or a cap for the rationing; neither has a published date.
Frequently Asked Questions
How much has Egypt cut gas to fertilizer plants?
Mopco, a fertilizer maker, said its gas supply was cut 33% from Sunday 8 November. An earlier 20% cut had begun on 1 November.
Has the steel industry been cut too?
EnterpriseAM reported on 9 November that Ezz Steel was told of a 30% cut, citing government officials. A steel industry official said, by EnterpriseAM’s account, that he had no confirmation of it.
Why is Egypt short of gas?
Domestic output has struggled to keep pace with demand, so Egypt relies on imported LNG. The Asian LNG price passed US$34 per million British thermal units at the end of October, according to EnterpriseAM.
Sources: Misr Fertilizers Production Company statement to the Egyptian Exchange, 8 November 2026, as relayed by Egypt Oil & Gas (8 November 2026); Abu Qir Fertilizers disclosure, as relayed by Egypt Oil & Gas (9 November 2026); Reuters (8 November 2026); EnterpriseAM (9 November 2026).
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