Egypt Daily News – A state of anxiety prevailed in economic circles in Israel, following the announcement of the discovery of an important gas find in Egypt and its potential impact on plans to export Israeli gas to Egypt.
Under the title: “New gas discovery in Egypt; gas partnerships do not need to worry at the present time,” a report by the Israeli economic website bizportal stated that the huge discovery of a new gas field off the coast of Egypt will not make it abandon Israeli gas, especially with the increased growth of its gas consumption.
The international energy company ExxonMobil announced a major gas discovery in the Mediterranean Sea off the coast of Egypt. This discovery was made in the “Nefertari-1” well in the northern Marakia sector, only 8 kilometers from the northern coast of Egypt. A statement issued by the company indicated that they “found gas reserves and will continue to evaluate the results.”
The Israeli report explained that this discovery may represent the beginning of new cooperation between Egypt and Britain, especially with renewable energy becoming a turning point in the Egyptian energy industry, which has witnessed stagnation in recent years despite its great economic potential.
The report indicated that the gas industry in Egypt witnessed many fluctuations during the past decade. The Zohr gas field, discovered by the Italian company Eni in 2015, is considered a historic discovery and is classified as one of the largest gas fields in the world, with a production capacity of about 850 billion cubic meters of gas. The discovery initially led to an economic boom, but the dollar crisis in recent years and a decline in gas production have caused significant damage to the industry.
The report continued: In recent years, after a decline in production, Egypt was forced to increase its imports of liquefied gas, which led to an increase in foreign exchange expenditures and a worsening of the economic situation. The discovery of the Nefertari-1 reservoir may change this trend and return Egypt to the gas export path, which is the goal set by the government by the end of 2027.
Regarding the situation in Israel, the report indicated that the local gas partnerships that own the Leviathan field are exporting gas to Egypt. Although the new discovery may reduce the demand for Israeli gas, the demand for gas in Egypt is growing significantly annually, and part of it is exported at great profits.
The report added that the Egyptians buy Israeli gas and sell it to Europe at high profits, and therefore they will not want to give up this profitable resource. Converting the new discovery into a productive reservoir will take many years, so the Leviathan field and its associated partnerships are not expected to be harmed in the near future.
The report also noted that the eastern Mediterranean has become a global hub for gas discoveries in recent years, with large fields discovered in Israel and Cyprus. In Israel, the discovery of the Tamar and Leviathan fields in 2009 and 2010 changed the local energy balance, turning the country into a gas exporting country. Cyprus has also discovered fields such as Aphrodite, enhancing the regional potential.
He added that the region’s geographical proximity to energy markets in Europe and the Middle East, which need stable supplies of gas, gives discoveries in Egypt a strategic advantage. However, political instability and geopolitical risks in the region make realizing its full potential difficult.
The report indicated that the area in which the recent discovery was made in Egypt has been under the control of ExxonMobil since 2019, and since 2022 Qatar Energy Company has owned 40% of it. The discovery comes at a time when Egypt is trying to rehabilitate its gas industry and restore the confidence of foreign investors, after crises that caused delays in payment and a decline in investments.
The Egyptian government recently launched a plan to pay foreign energy companies’ dues, with the aim of encouraging new investments and rehabilitating the energy industry. The discovery of Nefertari-1 reservoir may represent not only a potential source of income for Egypt, but also an opportunity to attract additional international players to the industry.
The report concluded by noting that in addition to Zohr field, smaller fields have been discovered in Egypt in recent years, but their economic potential has not been realized due to regulatory delays and lack of infrastructure. Now, with the new discovery, Egypt is seeking to return to being a major player on the regional energy map, supported by gas fields planned by companies such as BP, as well as programs to increase production at the Zohr field.
