Energy

Egypt to increase gas imports from Israel

September 24, 2024, 12:04 PM

To meet Egypt's growing demand, more gas will come from Leviathan, Israel's largest gas field

Increase in imports from October
Growing demand for electricity
Increase to 1.6bn cfpd by 2026

Egypt plans to increase natural gas imports from Israel by 20 percent from October, to meet its fast-growing domestic demand for electricity.

Imports will reach 1.2 billion cubic feet per day (cfpd), according to reports. They were already up 18 percent in September from 850 million cfpd in July.

The two countries have agreed to increase gas flows by 50 percent to 1.6 billion cfpd by the end of next year, after completion of a gas link by Israel.

A 46km pipeline due to be completed in May 2025 will link Ashdod and Ashkelon in Israel to Arish in Egypt.

Israel pumps gas from its offshore Leviathan field and has increased output at the Tamar field to meet Egypt’s growing demand. It is also likely to develop exports from the Katlan project.

Egypt, the world’s 11th-largest natural gas producer, has become a net buyer of natural gas this year after a steep decline in output from Zohr, its largest natural gas field, which was developed by the Italian company Eni.

The field once accounted for 40 percent of the country’s total gas production, but it currently produces less than 20 billion cubic metres of gas, according to Facts Global Energy.

Gas shortages have plunged Egypt into prolonged power blackouts. Cairo has bought more than 50 LNG cargoes to alleviate the energy crunch this year.

Last week Egypt’s prime minister, Mostafa Madbouly, said the government plans to restore natural gas production to normal levels by June 2025. However, this might be compromised by arrears owed to foreign oil and gas companies.