2024-07-03 09:48:02
The Egyptian Ministries of Electricity and Petroleum announced a decisive plan to address the power outage crisis, stressing the government’s commitment to ending this problem during the current summer.
The Egyptian Petroleum Ministry spokesman said the country’s gas production currently stands at 5.7 billion cubic feet per day.
“It was agreed that 21 shipments of liquefied gas will arrive in Egypt during the summer, in addition to other quantities and shipments of diesel,” the spokesman was quoted as saying by the state-run Middle East News Agency, noting that the first gas shipment arrived yesterday, Monday, and “was unloaded to be supplied to the national gas network.”
He added, “By the third week of July, things will be under control and the national gas network will have sufficient stocks.” This comes amid a crisis in the country that has led to power outages for at least two hours a day due to the lack of sufficient gas to operate generators with increased pressure in the summer.
Last month, Egypt awarded tenders to buy 20 shipments of liquefied natural gas, the largest purchase of the fuel transported by sea, to cover the high demand in the summer from July to September.
Natural gas supplies, which help Egypt generate electricity, have dwindled as population growth and urban development drive up demand for electricity, and when temperatures rise, air conditioning uses up more energy.
Prime Minister Mostafa Madbouly said late last month that Egypt needs to import about $1.18 billion worth of natural gas and diesel to end the ongoing power outages exacerbated by successive heat waves.
US shale gas
In a related context, Sidi Kerir Petrochemicals Company (Sidpec) in Egypt said it intends to import liquid ethane gas (American shale gas) as part of a multi-party alliance to fill the shortage in natural gas supplies that forced several chemical plants to temporarily stop production twice last month.
It added, in a disclosure to the stock exchange, that it will own a 25% stake in a company worth $663 million that will be established this year through an alliance to import American shale gas.
Sidi Kerir is one of several major companies in the fertilizer and chemicals sector that were forced to stop production after facing a shortage in gas supplies. This coincided with the worsening power outage crisis that Egyptians have been suffering from since last year due to increased energy consumption in the summer and a shortage of gas.
The alliance also includes the Egyptian Ethylene and Derivatives Company (ETHYDCO) and Gamma Construction Company, each with a 25% stake, in addition to the Egyptian Petrochemicals Holding Company (ECHEM) with a 15% stake and the Egyptian Natural Gas Company (GASCO) with the remaining 10% stake.
The disclosure stated that the capital will be provided “in 3 stages, with 40% provided by shareholders and 60% through bank loans, according to the plan.”
The government’s decision to bring stores’ closing times one hour earlier than the usual summer hours has sparked a storm of reactions in Egypt. The decision was implemented starting yesterday, Monday, with stores closing at 10 pm and restaurants closing at midnight local time, in order to rationalize electricity consumption.
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2024-07-03 09:48:02