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Egypt Aims to Restore Normal Output at Gas Fields by Summer 2025

Egyptian Prime Minister, Mostafa Madbouly, speaks during the World Governments Summit, in Dubai, United Arab Emirates, February 12, 2024. REUTERS/Amr Alfiky/File Photo Purchase Licensing Rights
Egyptian Prime Minister, Mostafa Madbouly, speaks during the World Governments Summit, in Dubai, United Arab Emirates, February 12, 2024. REUTERS/Amr Alfiky/File Photo Purchase Licensing Rights
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Egypt Aims to Restore Normal Output at Gas Fields by Summer 2025

Egyptian Prime Minister, Mostafa Madbouly, speaks during the World Governments Summit, in Dubai, United Arab Emirates, February 12, 2024. REUTERS/Amr Alfiky/File Photo Purchase Licensing Rights
Egyptian Prime Minister, Mostafa Madbouly, speaks during the World Governments Summit, in Dubai, United Arab Emirates, February 12, 2024. REUTERS/Amr Alfiky/File Photo Purchase Licensing Rights

Egypt aims to restore normal production at its natural gas fields by next summer, Prime Minister Mostafa Madbouly said on Thursday.

Madbouly told a news conference that production had fallen because of the arrears, but did not say how much the government owed nor when it might be repaid.

Sources told Reuters in March that the government had set aside up to $1.5 billion for payments to foreign oil and gas companies operating in the country. The arrears built up during a long-running foreign currency shortage that has since eased.

Egypt has been grappling with power shortages amid high demand for cooling systems in the summer. The country generates most of its electricity from burning natural gas.

The government halted load-shedding power cuts in July after some natural gas shipments arrived.

"Electricity load-shedding cuts won't return again," Madbouly said, adding the government had set aside $2.5 billion to ensure that.

He said there were also plans to bring an Egypt-Saudi power grid link online in a first phase by the summer of 2025.

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Biden Blocks Takeover of US Steel by Japan's Nippon Steel

FILE PHOTO: The logos of Nippon Steel Corp. are displayed at the company headquarters in Tokyo, Japan March 18, 2019. REUTERS/Yuka Obayashi/File Photo
FILE PHOTO: The logos of Nippon Steel Corp. are displayed at the company headquarters in Tokyo, Japan March 18, 2019. REUTERS/Yuka Obayashi/File Photo
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Biden Blocks Takeover of US Steel by Japan's Nippon Steel

FILE PHOTO: The logos of Nippon Steel Corp. are displayed at the company headquarters in Tokyo, Japan March 18, 2019. REUTERS/Yuka Obayashi/File Photo
FILE PHOTO: The logos of Nippon Steel Corp. are displayed at the company headquarters in Tokyo, Japan March 18, 2019. REUTERS/Yuka Obayashi/File Photo

US President Joe Biden blocked Nippon Steel's proposed $14.9 billion purchase of US Steel on Friday, citing national security concerns, dealing a potentially fatal blow to the contentious plan after a year of review.

The deal was announced in December 2023 and almost immediately ran into opposition across the political spectrum ahead of the Nov. 5 US presidential election. Both then-candidate Donald Trump and Biden vowed to block the purchase of the storied American company, the first to be valued at more than $1 billion. US Steel once controlled most of the country's steel output but is now the third-largest US steelmaker and 24th biggest worldwide.

"A strong domestically owned and operated steel industry represents an essential national security priority and is critical for resilient supply chains," Reuters quoted Biden as saying. "Without domestic steel production and domestic steel workers, our nation is less strong and less secure."

Nippon, the world's fourth-largest steelmaker, paid a hefty premium to clinch the deal and made several concessions, including a last-ditch gambit to give the US government veto power over changes to output, but to no avail.

In a statement, Nippon and US Steel blasted Biden's decision, calling it a "clear violation of due process" and a political move, and saying they would "take all appropriate action" to protect their legal rights.
Pittsburgh-based US Steel had warned that thousands of jobs would be at risk without the deal.
US Steel CEO David Burritt said late on Friday the company planned to fight Biden's decision, which he termed "shameful and corrupt." He added that the president had insulted Japan and also refused to meet with the US company to learn its point of view.
"The Chinese Communist Party leaders in Beijing are dancing in the streets," Burritt added.
The United Steelworkers union, which opposed the merger from the outset, praised Biden's decision, with USW President David McCall saying the union has "no doubt that it's the right move for our members and our national security."
White House spokesperson John Kirby defended the decision.
"This isn't about Japan. This is about US steelmaking and keeping one of the largest steel producers in the United States an American-owned company," Kirby said, rejecting suggestions the decision could raise questions about the reliability of the US as a partner. Nippon Steel has previously threatened legal action if the deal was blocked. Lawyers have said Nippon Steel's vow to mount a legal challenge against the US government would be tough.
The Committee on Foreign Investment in the United States spent months reviewing the deal for national security risks but referred the decision to Biden in December, after failing to reach consensus.
It is unclear whether another buyer will emerge. US Steel has reported nine consecutive quarters of falling profits amid a global downturn in the steel industry. US-based Cleveland-Cliffs, which previously bid for the company, has seen its share price fall to the point where its market value is lower than that of US Steel.
Shares of US Steel closed down 6.5% at $30.47 on the New York Stock Exchange.
A spokesperson for President-elect Trump, who also vowed to block the deal, did not immediately comment on Friday.