Egypt Daily News – Egypt’s imports of natural gas from Israel have returned to normal levels of around 800 million cubic feet per day as of Saturday evening, following a sharp decline to about 300 million cubic feet per day due to maintenance work on the Israeli side that began on May 20, according to a government official who spoke to Asharq on condition of anonymity.
Egypt first began importing gas from Israel in 2020 for liquefaction and re-export, under a $15 billion deal between Noble Energy (acquired by Chevron in 2020) and Delek Drilling. The partnership marked a major step in regional energy cooperation and contributed to Egypt’s goal of becoming an energy hub.
However, with Egypt’s own natural gas production witnessing a notable decline, the country resumed importing liquefied natural gas (LNG) last year to meet domestic demand, a reversal from its status as a net exporter since 2018, thanks to major discoveries such as the Zohr gas field.
Increased Gas Supply to Fertilizer Plants
In tandem with the recovery of Israeli gas flows, Egypt’s authorities have increased gas allocations to local fertilizer and methanol plants to 70% of their usual supply levels starting Sunday. Two sources from fertilizer companies confirmed the increase, which follows a 50% cut in gas supplies that began on May 20 due to the earlier supply shortfall.
Fertilizer and petrochemical factories account for approximately 35% to 40% of the industrial sector’s daily gas consumption, estimated at 1.6 billion cubic feet per day, about 25% of the country’s total domestic gas usage.
Ongoing LNG Imports to Meet Energy Demands
Given the natural decline in output from Egypt’s aging gas fields, the government plans to continue importing LNG until at least the 2029–2030 fiscal year. Egypt’s gas production has fallen to nearly 4 billion cubic feet per day, while national demand reaches about 6 billion cubic feet daily, particularly during the high-demand summer season.
In response to the domestic production shortfall, foreign energy companies operating in Egypt have accelerated exploration and production activities. The government has introduced new incentives, including allowing companies to export a portion of their new production to help cover outstanding dues. Additionally, it has increased the price paid to these companies for their share of the new output.
These developments highlight Egypt’s balancing act between maintaining energy security, supporting industrial needs, and sustaining its role as a key player in regional energy markets.
