Egypt is buying large amounts of fuel oil to run its power plants. Natural gas has become too expensive. The state-owned Egyptian General Petroleum Corporation recently asked for nearly 2 million tons of fuel oil. This fuel will arrive this month and next. Egypt prefers fuel oil over piped gas and liquefied natural gas because gas costs more.
Egypt’s gas production has dropped fast. The country changed from exporting liquefied natural gas to importing it. Because of this, Egypt now uses more fuel oil to make electricity. Fuel oil use is common in the Middle East during hot months when air conditioning demand is high. But Egypt’s fuel oil use is unusually large for this time of year. This demand pushed fuel oil prices in northwest Europe to the highest level since 2008.
The International Energy Agency updated global oil demand numbers recently. It showed Egypt’s use of fuel oil, gasoil, and liquefied petroleum gas is higher than first reported. This rise happens because Egypt has less natural gas available. Egypt’s switch to fuel oil means it accepts more carbon emissions. Fuel oil pollutes more than natural gas.
This change shows how energy prices can quickly shift demand. With natural gas costing more and becoming scarce, fuel oil is a cheaper choice. Egypt faces challenges to keep energy affordable for its growing population. It also needs to manage environmental issues. Egypt works on renewable energy and gas projects. But fuel oil is the main solution for now.
