Govt cuts gas supplies to steel mills as LNG costs rise

Egypt has reduced natural gas supplies to several steelmakers, including Ezz Steel, as rising global LNG prices increase the cost of securing the country's energy needs.

The government has cut gas supplies to Ezz Steel by 30pct, equivalent to around 30 mln cubic feet per day, according to the local media reports. Gas supplies other integrated mills like Suez Steel and Beshay Steel were also reduced by 30pct.

The cuts are part of broader measures to manage available gas resources and reduce consumption as Egypt faces higher costs for imported LNG amid a gap between domestic production and demand.

The government had earlier reduced gas supplies to fertilizer and methanol plants by 20pct for an indefinite period. Egypt has also postponed some LNG shipments scheduled for November as higher international prices increase import costs.