What:
As the mercury climbs this summer, Egypt’s natural gas imports from Israel will drop sharply by 22% to 900 million cubic feet per day from June through September. Why? A domestic spike in Israeli consumption due to rising temperatures is pinching the supply.
So What:
Egypt has long relied on Israeli natural gas to satisfy part of its domestic demand while exporting excess supply as liquefied natural gas (LNG) to Europe. These exports flow mainly through liquefaction plants in Idku and Damietta, boasting a combined capacity of 2.1 billion cubic feet per day.
The Twist:
Due to local shortages, Egypt is now buying spot LNG shipments to avoid power cuts, marking a significant shift from its previous exporter status following the 2018 discovery of the giant Zohr gas field.
Now What:
Egypt plans to boost its gas supplies by importing three monthly LNG shipments from July to October, at a cost of up to USD 120 million each month, according to a government official who spoke to Asharq Business on the condition of anonymity. This move aims to meet Egypt’s electricity needs during the hotter months, as the country seeks to increase available gas quantities for the latter half of the year.
Some Context:
Electricity blackouts have resumed in Egypt as the government decided to implement a load-shedding system for two hours daily after the Eid al-Fitr holiday. This system involves rotating power cuts across different areas.
