Nitrogen Fertilizer Industry

Promoting Industrial Growth and Encouraging Foreign Direct Investment in Egypt

Responsible Entities

Despite being one of the most important Egyptian industries, the nitrogen fertilizer industry faces challenges and problems due to the high price of energy. The industry is one of the most important Egyptian industries; the industry’s total investments reached approximately LE 200 billion, and it directly employees 50,000 workers.
It is worth noting that natural gas is a main input in the manufacturing of nitrogen fertilizers; the cost of natural gas represents approximately 75-80% of the variable input costs for producing nitrogen fertilizers.
Between 2014 to 2020, the price of supplying natural gas to nitrogen fertilizer factories have been fixed.

Responsible Entities

Date 6/30/2020

Lower the price of natural gas supplied to nitrogen fertilizer factories to $3/million British thermal unit.
Adopt a product-linked natural gas pricing formula, such as the one applied to several urea-producing Egyptian companies—the price of natural gas is linked to the selling price of urea.

Responsible Entities

Date 6/30/2020

Promoting Industrial Growth and Encouraging Foreign Direct Investment in Egypt https://fei.cipe-arabia.org:443/Problems/ViewProblem?id=33 Industry-Specific Reforms > Nitrogen Fertilizer Industry
Nitrogen Fertilizer Industry Challenge(s) Despite being one of the most important Egyptian industries, the nitrogen fertilizer industry faces challenges and problems due to the high price of energy. The industry is one of the most important Egyptian industries; the industry’s total investments reached approximately LE 200 billion, and it directly employees 50,000 workers. It is worth noting that natural gas is a main input in the manufacturing of nitrogen fertilizers; the cost of natural gas represents approximately 75-80% of the variable input costs for producing nitrogen fertilizers. Between 2014 to 2020, the price of supplying natural gas to nitrogen fertilizer factories have been fixed. Recommendation(s) Lower the price of natural gas supplied to nitrogen fertilizer factories to $3/million British thermal unit. Adopt a product-linked natural gas pricing formula, such as the one applied to several urea-producing Egyptian companies—the price of natural gas is linked to the selling price of urea. Status/Notes / Updates

https://fei.cipe-arabia.org:443/Problems/ViewProblem?id=33

Industry-Specific Reforms > Nitrogen Fertilizer Industry

Challenge(s)

Despite being one of the most important Egyptian industries, the nitrogen fertilizer industry faces challenges and problems due to the high price of energy. The industry is one of the most important Egyptian industries; the industry’s total investments reached approximately LE 200 billion, and it directly employees 50,000 workers.
It is worth noting that natural gas is a main input in the manufacturing of nitrogen fertilizers; the cost of natural gas represents approximately 75-80% of the variable input costs for producing nitrogen fertilizers.
Between 2014 to 2020, the price of supplying natural gas to nitrogen fertilizer factories have been fixed.

Lower the price of natural gas supplied to nitrogen fertilizer factories to $3/million British thermal unit.
Adopt a product-linked natural gas pricing formula, such as the one applied to several urea-producing Egyptian companies—the price of natural gas is linked to the selling price of urea.