Egypt is deepening its cuts to natural gas supplies for fertilizer producers, raising the reduction from 20% to 33% on November 8 as it grapples with soaring costs of imported liquefied natural gas (LNG). The country is turning to Cyprus for additional pipeline supplies, but experts suggest that Israeli gas will remain crucial for years. Misr Fertilizers Production Co. (MOPCO) and Abu Qir Fertilizers have disclosed the latest cuts, which threaten Egypt’s export earnings and food security.
Egypt’s domestic gas production fell nearly 30% between 2021 and 2024, reversing its ambitions to become a major regional gas exporter. The financial burden has grown since the U.S. and Israel attacked Iran on February 28, with LNG imports costing approximately $2.3 billion in the first quarter of 2026. Prime Minister Mostafa Madbouly noted that the monthly cost of purchasing imported natural gas had nearly tripled to $1.65 billion.
Israel has become one of Egypt’s most important external gas suppliers, with much of the imported pipeline gas coming from Israel’s Leviathan field. In August 2025, the field’s partners signed a $35 billion agreement to supply Egypt through 2040. Despite tensions between the two countries, the gas trade provides a powerful economic incentive to maintain their relationship. Egypt plans to raise imports from Israel by about 25% in November, covering roughly 17% of its daily consumption.
Cyprus could eventually provide Egypt with another significant gas source, but its two leading export projects serve different purposes. The Cronos field, expected to begin production in the first half of 2028, will primarily export to Europe, leaving only 20% for domestic consumption. The Aphrodite field, intended primarily to supply the Egyptian market, could deliver about 700 million cubic feet a day, but a binding sales contract has yet to be concluded.