Does Egypt buy gas from Israel?
Does Egypt Buy Gas From Israel?
Yes, Egypt does buy natural gas from Israel. This significant energy trade began in 2020 with the inauguration of a pipeline connection between the two countries. The gas is primarily sourced from Israel’s offshore Leviathan and Tamar fields, which hold substantial reserves. This arrangement marked a notable shift in regional energy dynamics, as Egypt, once a net exporter of natural gas, has increasingly become a consumer due to rising domestic demand and declining production from its older fields.
The gas supplied from Israel to Egypt is not solely for Egyptian domestic consumption. A substantial portion of the Israeli gas imported by Egypt is re-exported, primarily as liquefied natural gas (LNG), from Egypt’s liquefaction plants. This allows Egypt to leverage its existing LNG infrastructure, providing an avenue for Israeli gas to reach European and Asian markets. The agreement benefits both nations, offering Israel a new market for its gas and providing Egypt with a valuable commodity for its energy sector and export economy.
This energy partnership underscores a growing economic interdependence between Egypt and Israel. The long-term contracts for gas supply highlight a strategic decision by both governments to foster stability and cooperation in the energy sector. The infrastructure in place, including the subsea pipeline, facilitates a reliable and continuous flow of natural gas, contributing to regional energy security.