Israel Increases Gas Supplies to Egypt by 26% to Reach 1.2 Billion Cubic Feet Per Day

SadaNews - Israel has raised its natural gas exports to Egypt by approximately 26.3%, reaching 1.2 billion cubic feet per day currently, compared to about 950 million cubic feet per day last June, following the implementation of the first phase of the revised gas export agreement between the two countries, according to a government official who spoke to "Al-Sharq Bloomberg" on the condition of anonymity.

The official stated that the additional quantities, amounting to about 250 million cubic feet per day, are supplied from the "Leviathan" and "Tamar" fields in the eastern Mediterranean, clarifying that the increase was scheduled for February, but regional tensions and military escalation between Israel and Iran prevented its implementation on the scheduled date.

He added during his talk with "Al-Sharq Bloomberg" that the revised agreement stipulates increasing supplies to Egypt in three phases, starting with an additional 250 million cubic feet per day, then the increase will rise to 400 million cubic feet per day by January 2027, for total supplies to reach about 1.4 billion cubic feet per day.

He pointed out that the increase will reach 600 million cubic feet per day by January 2029, bringing total supplies to about 1.6 billion cubic feet per day, after the completion of the new pipeline dedicated to receiving the additional quantities and the establishment of a gas pressure boosting station for the gas produced from the "Tamar" and "Leviathan" fields.

The official explained that Egypt agreed to amend the agreement to include a provision that prioritizes the domestic market in Israel, allowing for the suspension of the contracted additional quantities of 600 million cubic feet per day if the Israeli market needs them.

In August, "New Med Energy", a partner in the Israeli "Leviathan" field, announced a significant amendment to the natural gas export agreement to Egypt, which includes increasing the supplied quantities and extending the supply period until 2040. This step was described by the Israeli Prime Minister as "the largest in Israel's history," with a value of approximately $35 billion.

Egypt began importing gas from Israel in 2020 under an agreement valued at $15 billion, which was recently amended to increase quantities and extend the contract duration.

Egypt's current average natural gas production is less than 4 billion cubic feet per day, against a local demand reaching about 6.2 billion cubic feet per day, which rises to 7.2 billion cubic feet per day during the summer months, driven by increased consumption in power stations, forcing Cairo to import liquefied natural gas shipments to bridge the gap between production and consumption.

In parallel with the increase in LNG imports, Egypt aims to raise its domestic production to about 6.6 billion cubic feet per day by 2030, representing an increase of over 65% from its current level, along with drilling 14 exploratory wells in the Mediterranean during 2026 to assess reserves estimated at about 12 trillion cubic feet.