Egypt Urea Production Shuts Down As Israel-Iran Conflict Hits Gas Supply
16 June 2025 In Egypt, gas supply issues have re-emerged, with urea production hit due to an interruption in gas flow from Israel following Israel’s strike on Iran, several suppliers confirmed today.
Most producers are understood to have stopped production from today, while some may be operating at lower rates. Details are not available.
Resumption in gas supply is expected once the situation deescalates.
Israel’s Prime Minister Benjamin Netanyahu stated today that strikes will continue “for as many days as it takes” to remove nuclear enrichment facilities, as US Secretary of State Marco Rubio urged the Iranian government not to respond.
Egyptian plants were previously down or producing at lower rates during 17-31 May due to gas cuts and maintenance.
Supply disruptions are expected to continue in the summer whenever there is extreme weather in Egypt, given the constraints on gas supply in the country despite increasing imports of liquified natural gas (LNG).
Egypt is ramping up its demand for LNG imports and swung back to being an LNG importer over the last year. It is already seeking a high number of cargoes this year, as well as planning further imports between now and 2028.
Egypt is understood to have reached agreements with several energy firms and trading houses to buy around 150 to 160 cargoes of liquefied natural gas (LNG), as it ramps up purchases to meet power demands despite strained government finances.
It is still not clear if the higher imports will curb power cuts and urea production issues in peak consumption months such as in the summer.
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