Egypt Plans to Restore Normal Gas Production by Next Summer

Egypt aims to resume normal natural gas production by next summer, according to Prime Minister Mostafa Madbouly. The government is addressing arrears with production companies, with $1.5 billion set aside for payments. Efforts to stabilize electricity supply are ongoing, including an Egypt-Saudi power grid link projected for 2025.

Egypt aims to restore normal production at its natural gas fields by next summer, Prime Minister Mostafa Madbouly said on Thursday, signaling the government is moving to settle its arrears with production companies.

Madbouly told a news conference that production had fallen because of the arrears, but did not disclose the amount owed nor when it might be repaid. In March, sources informed Reuters that the government had earmarked up to $1.5 billion for payments to foreign oil and gas companies operating in the country. The arrears accumulated during a prolonged foreign currency shortage that has now eased.

Egypt has been dealing with power shortages due to high demand for cooling systems in the summer. Most of the country's electricity is generated from burning natural gas. The government halted power cuts, known as load-shedding, in July after receiving some natural gas shipments.

"Electricity load-shedding won't return," Madbouly assured, noting the government had allocated $2.5 billion to ensure stable supply. He also mentioned plans to activate an Egypt-Saudi power grid link in a first phase by the summer of 2025.

(With inputs from agencies.)