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Egypt's cement firms overcome gas shortages by importing coal

The government has targeted energy-intensive cement companies for cutoffs while its priority has been to preserve gas for power generation.
06.11.14 | Source: Reuters

Several of Egypt's major cement producers have begun retrofitting their plants to run on energy from imported coal, beating high gas prices and energy shortages that have curbed industrial output this year.

Egypt has been suffering from an energy crisis in recent years as supply from state-owned Egyptian Natural Gas Holding Company (EGAS) has been intermittent and power blackouts commonplace.

The government has targeted energy-intensive cement companies for cutoffs while its priority has been to preserve gas for power generation, which would avoid blackouts and public unrest.

Cement companies began petitioning for permission to use coal instead, and the cabinet approved the industrial use of coal in April. Companies still must petition for individual licences to burn and import coal.

Some have already retro-fitted their plants to run on coal.

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