Egypt’s gas exports hit $8B in 2021/2022

CAIRO - 26 September 2022: Egypt's exports of natural and liquefied gas amounted to about $8 billion in the fiscal year 2021/2022, according to a cabinet statement on Sunday.

 

Previously, Finance Minister Mohamed Maait said that Egypt earns about $500 million per month from natural gas exports and aims to raise that number to $1 billion in the coming period.

 

The government has implemented a plan to rationalize electricity consumption in order to provide natural gas used in the stations in order to export it abroad in light of the high global prices.

 

Egypt's exports of natural gas rose, after starting to implement a plan to rationalize electricity consumption in August, according to what Prime Minister Mostafa Madbouly said in mid-September.

 

The Cabinet amended the method of calculating the selling prices of natural gas for nitrogenous fertilizer factories, to become according to a new price equation, so that it is not less than $4.5 per million British thermal units.

 

On the other hand, the government kept the selling price of natural gas supplied to the non-nitro-fertilizer industry at $5.75 per million British thermal units, provided that this decision does not apply to factories that will be accounted for according to price formulas included in natural gas supply contracts.

 

Moreover, the price of supplying natural gas to nitrogenous and non-nitrogenous fertilizer factories has been set since last November at $5.75 per million British thermal units.

 

Nitrogenous fertilizers are used more among ordinary farmers, while the use of non-nitrogen fertilizers is increasing among investment companies in order to enhance the productivity of the acre and thus profits.

 

The cost of consuming nitrogenous fertilizers from natural gas rises to represent 60 percent of the production cost, which is a higher rate than non-nitrogenous fertilizers.