Investment Minister Ashraf Salman has stated that the government will provide for 95% of fertilizer factories’ needs in November by directing a portion of Egypt’s natural gas imports to the factories while taking power stations’ needs into account so that the black-out crisis does not return once again.
In statements made to Daily News Egypt on the sidelines of Holding Company for Tourism, Hotels, and Cinema signing a contract with Steigenberger Hotel Management Thursday, Salman said that the fertilizer industry is suffering many crises which have pushed it toward complete demise. These crises include the low price at which the government buys companies’ products, less than 50% of the market price.
Additionally, a fee valuing EGP 400 – for which the state has yet to receive any revenues–will be cancelled. “We are killing the industry in this manner,” Salman said.
Salman revealed government intentions to repeal the fee as soon as possible, as farmers do not benefit from the measure and it currently only serves to harm the industry.
He continued, saying that the government’s priority is to direct a large portion of gas to power stations in order to avoid a second power outage crises, and new shipments of natural gas will make their way to the country beginning in November.
Salman said that Egypt will seek to increase the amount of gas it receives, explaining that companies are understanding and have agreed to wait until November to receive their complete shares of gas supplies, rather than receiving small portions now.