Petroleum Ministry’s dues to Electricity Ministry surpass EGP 205B end-January
Updated 2/4/2025 4:27:00 AM
Arab Finance: Dues of the Egyptian Ministry of Petroleum and Mineral Resources to the Ministry of Electricity exceeded EGP 205 billion by the end of January, an unnamed government official told Al Arabiya Business.
From October 2024 to January 2025, the dues jumped by about 20% year on year (YoY) as a result of higher fuel withdrawals required for power generation.
The monthly fuel bill supplied to power stations rose to nearly EGP 18 billion, as a large portion of natural gas and mazut is imported at high USD costs.
Natural gas accounts for about 85% of the total fuel used in traditional power plants, with mazut serving as a substitute when gas supply declines.
Power stations in Egypt currently consume around 3.4 billion cubic feet of natural gas per day.
The Ministry of Electricity covers the bill partially, paying off between EGP 4 billion and EGP 7 billion monthly, while the rest accumulates as debts due to the petroleum ministry.
To meet growing demand, Egypt has turned to the global market, with the Egyptian Natural Gas Holding Company (EGAS) purchasing around 20 liquefied natural gas (LNG) shipments for winter consumption.
About 61 power plants are connected to the national gas grid, receiving allocations based on the Ministry of Electricity’s monthly distribution.
To reduce reliance on imported fuel, the electricity ministry is expanding renewable energy projects and upgrading existing power plants.
Meanwhile, the petroleum ministry is working to restore natural gas production to previous levels to cut LNG imports in 2025 and 2026.
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