Economy

Resumption of Israeli Gas Imports to Egypt in Small Quantities

Resumption of Israeli Gas Imports to Egypt in Small Quantities

An official from Egypt's Ministry of Petroleum and Mineral Resources announced today, Thursday, that Israeli natural gas exports to Egypt have resumed after being halted at the end of last week, but in small quantities without specifying the current flow rate. The disruption of exports followed Israel's suspension of production at the Tamar gas field operated by Chevron on October 9, shortly after fighting escalated with Hamas in Gaza. In response to this, the supplies were redirected to a pipeline in Jordan instead of the direct subsea pipeline to Egypt.

The Egyptian Cabinet stated in a release last Sunday that gas imports to Egypt had dropped to zero from 800 million cubic feet per day, contributing to a power generation shortfall that has led to electricity outages for months. However, an official from the Leviathan project said on Tuesday that "exports to Egypt are continuously ongoing, demonstrating the project's commitment to its clients and the Egyptian market. Gas production in Leviathan has continued throughout this period."

A source indicated that a brief interruption at the Israeli Karish offshore gas field resulted in increased gas pumping from the Leviathan field to Israel, which reduced exports but did not stop them. Egypt relies on Israeli gas imports to meet part of its domestic demand, as well as for exports, which represent an important source of foreign currency needed by the country. Demand for gas is rising in Egypt, which has a population of 105 million people, while its production has fallen to its lowest level in three years. The country faces an energy shortage in the summer, as heatwaves have increased the demand for cooling.

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