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Montevideo, April 17th 2024 - 11:55 UTC

 

 

Despite Gaza conflict, Israel among main natural gas exporters to Egypt

Thursday, March 21st 2024 - 21:51 UTC
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“The expansion of the total export quota to Egypt was increased by 38.7 BCM over 11 years,” the Israeli Ministry of Energy’s announced “The expansion of the total export quota to Egypt was increased by 38.7 BCM over 11 years,” the Israeli Ministry of Energy’s announced

Israel reported that natural gas exports from the Leviathan field to Egypt increased by 28% last year. Exports jumped from 4.9 billion cubic meters (BCM) in 2022 to 6.3 BCM in 2023. 

Israel Katz, former energy minister, approved the increase in exports to Egypt last year. For 2026, he projected an annual production increase of six BCM – about 60% over the current volume. “3.5 BCM of which will be directed in favor of Egypt,” the report stated. 

“The expansion of the total export quota to Egypt was increased by 38.7 BCM over 11 years,” the Israeli Ministry of Energy’s August announcement read. “The export permit was granted under the comprehensive framework approved by government decisions … and in consultation with the Director of the Natural Gas Authority.

In addition, an additional increase of 0.5 BCM per year is being considered.”

The ministry noted that, in addition to enabling production expansion, the new exports are expected to derive billions of dollars in bonus revenues for Israel, increase energy ties with Egypt and other regional players, and strengthen Israel’s geopolitical status.

Furthermore, the report adds that “on December 14, 2023, the partners in the Tamar reservoir announced that the Ministry of Energy approved them to increase the export permit of the reservoir from 38.7 BCM … to 43 BCM. This amount will make it possible to increase the maximum amount of additional gas allowed for export to Egypt from 3.5 BCM per year to 4 BCM per year. As of the valuation date, no agreement has yet been signed. The export is subject to the aforementioned export permit.”

It is anticipated that in the latter half of 2025, Leviathan field annual production will increase from 12 BCM to 14 BCM.

Even when Egypt/Israel tensions have been on the rise over Tel Aviv's plan to push Gazans into the Sinai Peninsula to continue with their plan of invading Rafah. 

Cairo called on Washington, which has previously condemned the plan, to send a clear message to its regional ally not to move forward with the Rafah invasion. It says that “it is not enough to state opposition; it is also important to indicate what if that position is circumvented, what if that position is not respected.”

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