Load on the national electricity grid rose significantly in May 2026 to a daily average of about 34,000 megawatts, up 9% from the same period last year, driving up natural gas consumption at power plants, a source at the Ministry of Electricity and Renewable Energy told Al Manassa.
The government took several measures in response to fluctuations in regional energy supplies caused by the US-Israeli war on Iran, including an increase in fuel prices, followed by a hike in electricity rates for households and commercial activities, and raising the tariff for coded meters to 2.74 Egyptian pounds ($0.05) per kilowatt-hour.
The source, who requested anonymity, explained that the rise in demand caused gas consumption at conventional power plants to increase by approximately 250 million cubic feet per day, bringing the May average to 3.4 billion cubic feet (bcf) per day, compared to 3.15 bcf in the same month last year.
The increase is attributed to industrial and household consumption rising by 8% to 9%, driven by the expansion of industrial projects and higher demand from residential units, the source added.
The Ministry of Petroleum allocated 10 shipments of liquefied natural gas (LNG) this month, equivalent to approximately 31.8 bcf of natural gas, for conventional power plants to meet the domestic demand for electricity consumption, according the source. The remaining gas needs of power plants would be secured through domestic production, Israeli gas flows, and some imports through the Arab Gas Pipeline.
The source familiar with consumption noted that LNG prices rose by about 65% to 88% in March and April, affected by disruptions in energy markets and the obstruction of oil and gas tanker traffic through the Strait of Hormuz.
He said the average LNG price in new contracts ranges between $20 to $22 per million British thermal units, while last year’s contracts were around $12 per million British thermal units, in addition to $2 for transport, shipping, and regasification.
The government aims to reduce gas and fuel oil consumption at conventional power plants amid rising energy import costs and periodic increases in electricity tariffs.
This month, the House of Representatives put forward five motions seeking to halt implementation of the government’s decision to impose a new billing system on coded electricity meters in non-compliant buildings, while Prime Minister Mostafa Madbouly said there would be no reversal of the decision, which raised electricity costs for about 3.6 million meters.
