Egypt is set to increase its natural gas imports from Israel by 20% starting in October to address its rapidly growing demand for electricity. This will raise imports to 1.2 billion cubic feet per day (cfpd), building on an 18% increase observed in September, when imports rose from 850 million cfpd in July.
The agreement between the two countries aims for a further increase to 1.6 billion cfpd by the end of next year, contingent upon the completion of a new gas link. A 46km pipeline, connecting Ashdod and Ashkelon in Israel to Arish in Egypt, is expected to be completed by May 2025.
Israel’s gas supply comes primarily from its offshore Leviathan field, and production has also ramped up at the Tamar field to support Egypt’s needs. The country is considering additional exports from the Katlan project as well.
Despite being the world’s 11th-largest natural gas producer, Egypt has turned into a net importer of gas this year, primarily due to a significant decline in output from its Zohr field, the largest in the country. Once responsible for 40% of Egypt’s total gas production, Zohr now generates less than 20 billion cubic meters, according to Facts Global Energy.
Gas shortages have led to extended power blackouts across Egypt, prompting the government to purchase over 50 LNG cargoes this year to mitigate the crisis. Prime Minister Mostafa Madbouly announced plans to restore natural gas production to normal levels by June 2025, although this goal may be hindered by outstanding debts to foreign oil and gas companies.
As Egypt seeks to stabilize its energy supply, the increased collaboration with Israel is a crucial step in addressing the nation’s urgent energy needs.
