A senior government official revealed last week that gas supplies, cut since August for political reasons, would return to Egypt Basic Industries Corporation (EBIC) fertiliser factory, a subsidiary of Orascom Construction Group.
In statements made to Al-Borsa, the official said that gas would be pumped once more as Nassef Sawiris, Chairman of the Board of Orascom Construction Industries, decided to waive his rights to the Egyptian Tax Authority. The decision follows the tax appeal committee’s ruling that he donate a sum of EGP 2.5bn to the Long Live Egypt Fund.
The official said that 35m cubic feet of gas was currently pumped daily to the EBIC factory, equivalent to 60% of the contracted value which amounts to 65m cubic feet.
He explained that in previous statements Ministry of Petroleum officials justified the suspension of gas supplies to the factory saying that it exported all ITS ammonia products abroad. They added that it did not sell any on the local market, with the ministry giving priority to factories feeding the local market in light of continuous production decreases in Egyptian gas.
The official pointed out that 510m cubic feet of gas is supplied to fertiliser and cement factories daily, representing 60% of their actual gas needs, which value 920m cubic feet daily.
He said that the amount of gas supplied to fertiliser factories was increased by no less than 20% following a decrease in gas consumption rates at power stations. The fall saw consumption rates fall from 95m cubic metres per day to 80m cubic metres daily at present.
The official pointed out that EGAS supplies 400m cubic feet of gas daily, representing 85% of fertiliser factories’ needs which amount to 510m cubic feet per day. The official added that 150m cubic feet of gas per day of 410m cubic feet total cement factory consumption will be supplied to compensate for remaining needs for fuel oil.