Israel agreed on Wednesday to export 38.7 billion cubic meters of natural gas to Egypt over a period of 11 years. Israeli Energy Minister Israel Katz revealed that Israel will increase its natural gas exports to Egypt from the Tamar offshore field, amid renewed interest in oil exploration at sea and debate over whether gas should be kept for local consumption. Katz stated that he approved the new exports after ensuring that the gas supplies needed for local consumption in Israel are secure. He wrote on "X": "This move will increase government revenues and strengthen diplomatic relations between Israel and Egypt."
Egypt, facing a rising demand for gas, has seen a 9% year-on-year decline in production between January and May and a 12% drop compared to the same period in 2021. Egypt is experiencing power outages due to heat waves increasing demand for cooling. Israeli citizen rights groups have warned that Israel may face a gas supply shortage as domestic demand grows, raising concerns about potential environmental damage from increased offshore activity. Energy companies in Israel produced 21.29 billion cubic meters of natural gas in 2021, of which only 9.21 billion were exported, primarily to Egypt and Jordan.
Egypt aims to become a regional gas supply hub, selling its gas and re-exporting Israeli gas in liquefied natural gas form to the Middle East, Africa, and Europe.
