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European Union expects Egypt to maintain LNG export levels

The float is part of Oman Investment Authority’s plan to bolster state coffers by diversifying their economies Reuters/Albert Gea
Egypt faces rising domestic gas demand and has been trying to save gas for export

The European Union (EU) expects a framework deal with Israel and Egypt to allow Egypt to maintain “relatively high volumes” of liquefied natural gas (LNG) deliveries to Europe, the bloc’s energy commissioner said.

The memorandum of understanding was signed last June with the aim of boosting exports of Israeli gas transported by pipeline to liquefaction plants on Egypt’s Mediterranean coast before being shipped north to Europe.

Egypt faces rising domestic gas demand and has been trying to save gas for export since prices and European gas demand surged last year after Russia’s invasion of Ukraine.

However, officials have said that any significant expansion in export capacity will take time.

“Now we have to solve some of the bottleneck issues,” EU energy commissioner Kadri Simson told Reuters on the sidelines of an energy conference in Cairo.

“We do expect that, with the help of this MoU, Egypt can keep the relatively high volumes of LNG that it delivered to Europe last year.”

Asked about LNG volumes that could be exported under the deal, Simson said: “It depends on national decisions. Of course Israel is the one that has to decide; what are the volumes they are willing to export.”

“We see that there is spare capacity in liquefaction facilities here in Egypt, but exact volumes were not part of our memorandum of understanding.”

Egypt’s Petroleum Minister on Monday said that the country’s LNG output was expected to remain steady at about 7.5 million tonnes this year.