Egypt cuts daily natural gas supply to 7 billion cubic feet

The Egyptian Ministry of Petroleum and Mineral Resources reduced natural gas pumping into the national grid to about 7 billion cubic feet daily since the start of October. According to an official source speaking to Al Arabiya Business, this drop represents a decline of nearly 400 million cubic feet daily compared to summer peak levels of about 7.4 billion cubic feet daily.

The source explained that cutting the quantities supplied to the national grid at the start of the fourth quarter came as consumption fell across various sectors, led by the electricity sector due to lower temperatures and declining electrical loads. He added that grid loads dropped this week to around 33,000 megawatts compared to nearly 40,000 megawatts during peak consumption in August, directly impacting power station needs.

The source noted that natural gas consumption by power plants decreased by about 250 million cubic feet daily since September to reach around 4 billion cubic feet daily. He stated that lower domestic demand gives the Ministry of Petroleum more space to reorganize liquefied natural gas import plans and reduce imported shipments compared to summer peak conditions.

The source pointed out that power generation plants currently account for 55% to 60% of Egypt's total natural gas consumption. Meanwhile, the ministry covers up to 45% of market needs during peak times through a mix of pipeline imports and liquefied natural gas shipments directed to the electricity and industrial sectors, particularly energy-intensive industries such as fertilizers and petrochemicals.

What do these terms mean?

National Gas Grid: The main pipeline system that transports natural gas from production fields and import ports to various sectors and consumers across the country.

Liquefied Natural Gas (LNG): Natural gas cooled to very low temperatures to turn it into a liquid, making it easier to transport large quantities via tankers.

Megawatt: A unit of electrical power measurement used to determine the amount of energy produced by power plants or consumed across the network, equal to one million watts.