Egypt raises natural gas supplies to industrial by 10% for H1 2025

Updated 2/3/2025 8:42:00 AM

Arab Finance: The Egyptian Ministry of Petroleum and Mineral Resources has raised its natural gas supplies to the industrial sector by 10% for the first half (H1) of 2025, an unnamed government official told Al Arabiya Business.

As of January, Egyptian factories' consumption of natural gas reached 1.6 billion cubic feet per day, accounting for 25% of the country's total consumption.

This increase comes amid the launch of some national industrial projects and the expansion of production programs in existing factories.

The official noted that gas consumption by factories grew by 150 million cubic feet per day, up from 1.45 billion cubic feet per day in H2 2024.

Fertilizer and petrochemical plants account for 35-40% of industrial gas consumption, with the government currently prioritizing supply to value-added industries, particularly petrochemicals, to boost foreign exchange earnings.

Egypt’s total gas demand stands at 6.2 billion cubic feet per day, while production is around 5 billion cubic feet per day.

The government is working to boost output alongside its commitment to settling arrears owed to foreign oil companies by the end of the fiscal year, aiming to encourage further exploration and development.

Major international firms, including Chevron, ExxonMobil, and Eni, are expanding their exploration activities, alongside development work on deep-water gas fields and infrastructure projects.

The Ministry of Petroleum is focused on restoring natural gas production to previous levels to reduce liquefied gas imports and ease pressure on the state budget.