We dug deep and found out what’s happening with Egypt’s energy crisis

With the discovery of the Zohr offshore natural gas field in 2015, Egypt aimed to become a major exporter of natural gas.

While the country’s natural gas production increased in 2019, it dropped sharply in 2023 and 2024, leading to a significant energy crisis.

The Zohr facilities are facing challenges as they have become waterlogged, making extraction more difficult. At the same time, foreign gas extraction companies have stopped their operations because Egypt owes them billions of dollars.

Egypt generates the majority of its electricity through natural gas combustion.

In May 2023, gas production declined so significantly that the government announced restrictions on its use for domestic consumption, prioritizing exports to bring in much-needed foreign currency.

This led to daily power outages to alleviate the country’s electrical infrastructure strain, especially during the summer when temperatures are extremely high.

The power outages continued through the summer, at least until late July.

In mid-July, Prime Minister Mostafa Madbouly announced that the outages would stop as natural gas shipments arrived in the country.

However, according to the New York Times, social media users recorded continued outages in the following days, and local media reported that some unplanned outages also occurred.

Although the power outages have stopped (or at least been reduced), the government announced new measures in effect until the end of September:

• Retail stores will remain open until 10:00 PM.
• Cafés, restaurants, and shopping malls will stay open until midnight, except on weekends and holidays when they will close at 1:00 AM.

Supermarkets, grocery stores, and pharmacies are exempt from these restrictions.

In Cairo, life typically starts at night, especially during the summer. In the mornings, residents stay indoors to avoid the heat and prefer to go out once the sun has set.

As the New York Times vividly describes, 10:00 PM “might be close to bedtime in other countries, but Cairo was just waking up. (…) The days were for cooling off indoors or at least avoiding the harsh sun. And the night… offered relief.”

However, this is no longer the case. On Cairo’s commercial streets, which used to be lively and open at 10:00 PM, darkness and closed shops now dominate.

Beyond Cairo, the power outages also impacted rural areas with the highest poverty rates.

Many people were left without electricity during extreme heat, disrupting daily tasks and limiting their access to water.

Various professionals, such as food vendors, struggled to preserve their produce, and livestock farmers saw their animals die in large numbers.

At the same time, University students studied for their exams using flashlights, according to the New York Times.

Saudi Arabia and Libya have financed natural gas shipments worth at least $200 million to help Egypt address its energy crisis.

However, Egypt requires around $2 billion worth of natural gas to meet demand through October, but its weakened currency has left the country without the necessary funds to cover this.

The country’s external debt exceeds $150 billion, and Russia’s invasion of Ukraine has made things worse by driving up the prices of essential goods.

President al-Sisi’s government increased fuel and food subsidies this summer, but this hasn’t been enough to improve citizens’ daily lives.

People are struggling with rising inflation, the high cost of living, and the ongoing currency depreciation.

New York Times [1], [2]

Reuters [1], [2]

Human Rights Watch [1]