On Thursday, September 19, 2024, Egyptian Prime Minister Mostafa Madbouly announced plans to restore natural gas production by next summer as the government works to resolve its outstanding debts to production companies.
At a news conference, Madbouly explained that declining production was linked to arrears but did not specify the amount owed or the timeline for repayment.
In March, sources told Reuters that the government had earmarked up to $1.5 billion to settle debts with foreign oil and gas companies operating in Egypt. These arrears accumulated during a foreign currency shortage, which has since eased.
Egypt has been facing power shortages due to high demand for cooling during the summer, with most of its electricity generated from natural gas. The government stopped load-shedding power cuts in July after receiving natural gas shipments.
Madbouly assured the public that electricity cuts would not return, with $2.5 billion allocated to prevent them. He also confirmed plans to launch the first phase of the Egypt-Saudi power grid connection by the summer of 2025.
