Egypt: gas supplies to cement plants replaced by fuel oil

Egypt: gas supplies to cement plants replaced by fuel oil
Published: 13 January 2015

Tagged Under: gas supply fuel oil Egypt 

Egypt’s decreased gas output is further squeezing fuel supplies to the country’s cement factories. The Egyptian Gas Holding Co (EGAS) has halted gas supplies to cement plants and redirected them to power plants, Daily News (Egypt) reports.

The Al-Qatameya, Helwan and Al-Qawmeya plants have been exempted from the gas cuts as they are directly connected to the Abu Gharadiq gas field, according to the report. Their total gas consumption is 61 cubic feet/day. The cement industry’s total gas consumption is 430M cubic feet per day.

The Egyptian General Petroleum Corp (EGPC) is sending fuel oil to cement producers, according to a senior EGAS official. A decline in Brent crude oil prices has led to lower prices per tonne of fuel oil with global prices reaching EGP1900. This has helped the country make significant savings in fuel costs and has lowered the fuel subsidy bill, creating the need for more diesel imports to make the best out of the current situation. He added that if the price of Brent continues to decline in the coming years, gas supplies will remain out of reach for the cement industry.