Egypt Prime Minister, Mostafa Madbouly has said the country is aiming to restore normal production levels at its natural gas fields by next summer which is a move to be part of the government’s efforts to settle its outstanding arrears with production companies.
The Prime Minister said on Thursday during a news conference that natural gas production had declined due to these arrears but did not specify the total amount owed or provide a timeline for repayment. Earlier this year, it was reported that the government had allocated up to $1.5 billion to pay foreign oil and gas companies operating in Egypt. The arrears accumulated during a prolonged foreign currency shortage, which has since improved.
Egypt has been struggling with power shortages, particularly during the summer months, when demand for cooling systems surges. The country relies heavily on natural gas for electricity generation. Power cuts, known as load-shedding, were halted in July following the arrival of natural gas shipments.
Madbouly assured the public that “electricity load-shedding cuts won’t return again,” and stated that the government had allocated $2.5 billion to prevent further power outages.
Additionally, the prime minister mentioned plans to activate the first phase of an Egypt-Saudi power grid link by the summer of 2025, aiming to bolster the country’s energy infrastructure.
