Egypt halts fertilizer production amid Israeli gas disruption triggered by Iran strikes

Egyptian fertilizer manufacturers were forced to suspend operations over the weekend after a major drop in natural gas imports from Israel, industry sources told Reuters.

The disruption followed Israel’s military strikes on Iranian nuclear facilities, prompting the shutdown of key Israeli gas fields, including Leviathan and Karish. In response, Egypt’s Petroleum Ministry activated an emergency gas allocation plan, prioritizing essential sectors and switching power stations to fuel oil and diesel to stabilize the network and avert load shedding.

Egyptian Prime Minister Mostafa Madbouly convened an emergency meeting with top energy and financial officials, stressing the need to increase strategic commodity reserves amid regional volatility. Petroleum Minister Karim Badawi assured the public that contracts for additional gas cargoes have been secured and fuel oil stockpiled. Of three floating storage and regasification units (FSRUs) docked in Egyptian ports, only one is operational, with the others undergoing preparations. Once all are online, daily regasification capacity is expected to more than double.

The crisis underscores Egypt’s increasing dependency on Israeli gas, which supplies up to 60% of its imported gas and roughly 20% of national consumption. To bridge the gap, Cairo has signed agreements to purchase over 150 LNG cargoes in a record \$8 billion deal, signaling the country’s most significant energy importation move to date. As regional tensions deepen, Egypt’s energy security remains vulnerable, with authorities racing to safeguard power generation and industrial stability.