Cairo – Egyptian Chemical Industries (KIMA) is assessing the operational and financial implications of a 20% reduction in its natural gas supply following a directive from its gas supplier, effective November 1.
The company disclosed that it had received formal notification of the supply reduction and had already implemented the directive.
Despite the cut, KIMA confirmed that its urea production plant continues to operate normally, indicating that production activities have not been immediately disrupted.
The company said it is currently evaluating the potential implications of the reduced gas intake and will provide further updates once the assessment is complete.
Natural gas is a key input in the production of ammonia and nitrogen-based fertilisers, making supply levels an important factor for KIMA's manufacturing operations and cost structure.
The extent to which the reduction could affect production costs, output levels and overall performance remains unclear pending the company's assessment.
Source: Reuters
