Egypt raised the percentage of natural gas reduction for fertilizer factories to 33 percent, in an effort by the country to reduce the need to import liquefied natural gas, which is an expensive option.
A statement issued by a company and officials in the fertilizer sector, on Sunday, stated that fertilizer producers in Egypt have been informed of a new 33 percent reduction in natural gas supplies directed to them.
The Misr Fertilizer Production Company (MOPCO) stated that it had received notification of this reduction, which comes after a previous 20 percent reduction in gas supplies to fertilizer factories.
Egypt relies on domestic gas, and increasingly on imported liquefied natural gas, to generate energy. However, local production is having difficulty keeping up with increasing demand. Geopolitical tensions - including war in the region - have also tightened global LNG markets and pushed up prices.
In early November, the government began reducing natural gas supplies directed to fertilizer and methanol factories by 20 percent, as part of measures to rationalize gas consumption and manage available quantities, with the high cost of importing. According to “Al Sharq Bloomberg”.
When announcing the previous reduction, MOPCO and Abu Qir Fertilizers and Chemical Industries stated that they would work to manage production in proportion to the quantities of gas available. Abu Qir Company indicated that it has contingency plans to manage inventory and reschedule maintenance work.
In a related context, Egypt has intensified its imports of less expensive fuel oil. Commercial sources told Reuters last month that the Egyptian General Petroleum Corporation had purchased six shipments of high-sulfur fuel oil to be supplied during the months of November and December.
LNG imports have increased this year, reaching their peak in July, before declining starting in August.
An analyst pointed out in October that the Ministry of Petroleum had allocated a budget of about $10.1 billion for liquefied natural gas in the fiscal year 2026-2027, but prices were higher than the ministry’s estimates. The analyst explained that the ministry had already spent $5.8 billion by October 6, indicating the possibility of exceeding the allocated budget before the arrival of the spring and summer seasons, a period that usually witnesses a rise in demand.
The Bahraini Minister of Transport and Communications, Sheikh Abdullah bin Ahmed Al Khalifa, affirmed that the integration of transport and communication networks between the countries of the Gulf Cooperation Council represents a fundamental pillar of Gulf economic security, in light of the regional and international challenges facing navigation and supply chains. He pointed out that the risks associated with vital sea lanes, most notably the Straits of Hormuz and Bab al-Mandab, and the accompanying disruptions in supply chains and high shipping costs, require strengthening coordination and joint response and developing transportation alternatives.
The minister said, during the agreement signing ceremony held today, Sunday, in the Bahraini capital, Manama, that the discussions focused on enhancing connectivity between ports, roads, railways, and airports, in a way that supports the continuity of supplies and the flow of trade, and limits the repercussions of unrest on individuals and the business sector.
He added that the general agreement to connect the GCC countries to the railway project, which was signed today, represents an essential step to complete the legal and regulatory frameworks for the project, enhance coordination between member states to proceed with its implementation, and establishes a new phase of connectivity and integration, opening broader horizons for trade, investment and movement between the Gulf states.
He explained that the expected impact of the project goes beyond facilitating transportation, to include improving the quality of life for citizens, residents, and visitors, by providing safe and sustainable travel options, enhancing communication between Gulf communities, supporting tourism and job opportunities, and raising the efficiency of transporting goods to markets.
He pointed out that the agenda of the thirtieth meeting of the GCC Ministers of Transport and Communications included 32 topics that dealt with the priorities of developing the transport sector and logistical integration, the most prominent of which was completing the railway project, international land transport, developing the executive frameworks for maritime transport, and enhancing the sector’s readiness to deal with crises.
The Minister announced the signing of two memorandums of understanding today, the first with Saudi Arabia for cooperation in the field of railways, and the second with Qatar regarding bilateral cooperation in the fields of land transport and supporting logistics services, with the aim of supporting the exchange of experiences, developing capabilities, and enhancing technical and organizational cooperation.
The minister's statements came during Bahrain's hosting of the thirtieth meeting of the Ministers of Transport and Communications of the Gulf Cooperation Council countries, which was held under the Kingdom's presidency of the current session of the committee, before handing over its presidency to Saudi Arabia.
The Secretary-General of the Gulf Cooperation Council, Jassim Al-Budaiwi, confirmed that signing the general agreement to link the GCC countries with the railway project represents an important step towards building an integrated Gulf transport system that enhances the movement of citizens and residents, facilitates the transport of goods, and raises the efficiency of intra-regional trade, in a way that supports the competitiveness of the GCC economies and the region’s position in the regional and international trade movement.
Al Budawi said, in a speech during the signing ceremony of the agreement held today, Sunday, in the Bahraini capital, Manama, under the patronage and presence of the Crown Prince and Prime Minister of Bahrain, Prince Salman bin Hamad Al Khalifa, that the project embodies an important aspect of the common Gulf ambition to connect the GCC countries, and enhance the efficiency of movement and trade movement, by linking economic and industrial centers, ports, and logistical centers in the countries of the region.
He added that the project provides opportunities to provide safe, reliable, economical and environmentally friendly transportation services that meet development needs and aspirations of future generations, and contribute to enhancing integration between the economies of the GCC countries.
Al-Budaiwi explained that the general agreement signed today establishes a common framework that regulates the obligations of member states to implement and operate the project in an integrated and compatible manner with national railway networks. It also specifies work mechanisms and a detailed timetable to accelerate the target date for implementation.
The Secretary-General expressed his appreciation for the efforts of the leaders of the GCC countries in moving forward with strategic projects that benefit the Gulf states and their people. He also thanked Prince Salman bin Hamad Al Khalifa for his sponsorship and attendance at the signing ceremony, and the Bahraini Minister of Transport and Communications Abdullah bin Ahmed Al Khalifa, Chairman of the current session of the Committee of Ministers of Transport and Communications of the GCC States, and the Gulf Ministers of Transport and Communications, for their efforts in supporting the project and completing the requirements for its implementation and operation.
