Alexandria Fertilizers suspends operations due to gas shortage

The move aims to ensure operational safety in the factories, Egypt Kuwait Holding Company (EKH) – which owns approximately 75.33 percent of AlexFert’s capital – said in a Monday disclosure to the Egyptian Exchange. 

The three factories consist of an ammonia plant capable of producing 1200 tons per day, a urea plant with a designed capacity of 1750 tons, and an ammonium sulfate plant with a daily production capacity of 720 tons.

The company exports approximately 70 percent of the company’s production to Europe and the US, with 30 percent of production directed to the domestic market, according to the company's data.

Egypt Kuwait Holding Company's profits rose by 1.2 percent in the first quarter of this year, reaching $ 71.97 million, compared to $ 71.1 million during the same period in 2023.

Last week, four of Egypt's prominent fertilizer manufacturers temporarily halted operations due to a severe shortage in gas supply.

The impacted companies are Abu Qir Fertilizers, Misr Fertilizers Production Company (MOPCO), Egyptian Chemical Industries Company (KIMA), and Sidi Kerir Petrochemicals (SIDPEC).

On Thursday, SIDPEC announced the gradual resumption of operation at its factories after the restoration of gas supplies. Abu Qir has announced plans to switch to hydrogen instead of gas.

Egypt has grappled with a shortage in natural gas supplies used for power generation, driven by the ongoing regional tensions and the unprecedented heatwave engulfing the country.

The soaring temperatures have led to a surge in electricity consumption across the country, as people heavily rely on air conditioning. This has, in turn, significantly increased the demand for gas to generate the required electricity.

Starting Monday, commercial stores in Egypt will close at 10 pm, instead of 11 pm, as part of recent measures announced by Prime Minister Mostafa Madbouly to reduce the electricity load amid the energy shortage.