Egypt extends gas supply cut to ammonia producers to 33%

Mopco reported the deeper cut in an exchange filing, and neither the fertilizer nor the methanol curtailments has an end date.

Egypt’s gas supply cut to fertilizer producers has deepened to 33%. Misr Fertilizers Production Company (Mopco), a state-run urea and ammonia producer, told the Egyptian Exchange in a filing dated November 8 that its gas intake had been reduced by 33%, up from 20% a week earlier.

Egyptian Chemical Industries (Kima) disclosed a 20% cut from November 1 after a directive from its gas supplier. Its main urea plant “continues to operate normally,” the company said, while it assesses the impact of the reduced supplies.

EnterpriseAM reported on November 9 that the government is raising curtailments on fertilizer and methanol plants to 33% as the cost of imported liquefied natural gas rises. Neither curtailment has an end date, and the government has not said how far down the industrial queue the rationing will extend.

The cuts land during a strong export market. EnterpriseAM put granular urea at about USD 535 a ton FOB for November contracts, up roughly 17% from September. It estimated that Egypt can make about 6.5 million metric tons of urea a year, uses about 2.9 million at home, and has roughly 3.6 million metric tons left to sell abroad. Fertilizer Daily covered the price side of the story in Egyptian urea at USD 535 a ton as gas cuts hit plants.

Sources: Egypt Oil & Gas, EnterpriseAM, The Daily Energy

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