In a recent development, Israel‘s Energy Ministry stated on Wednesday that they plan to ramp up their natural gas production from the Tamar offshore field, and subsequently increase exports to Egypt, a nation grappling with surging demand and plummeting production.
The ministry further elaborated that exports to Egypt would witness an additional increase of 38.7 billion cubic meters of natural gas over the span of 11 years. Additionally, production from the Tamar field is projected to grow by 60% or six billion cubic meters annually starting from 2026.
Israel’s Energy Minister, Yisrael Katz, emphasized the significance of this move, saying, “This step will boost state revenues and solidify the diplomatic relations between Israel and Egypt.” Katz refrained from delving into further details.
In 2021, energy companies in Israel produced 21.29 billion cubic meters of natural gas, of which only 9.21 billion were exported, predominantly to Egypt and Jordan.
Egypt, which has been wrestling with an escalating demand for gas, registered a 9% dip in its gas production annually between January and May, a 12% drop compared to the same period in 2021. The North African country has also been plagued by electricity outages, exacerbated by heatwaves that amplified the demand for cooling.
Katz affirmed that he sanctioned the new exports after being assured that gas supplies essential for domestic consumption in Israel were secured.
Over the past fifteen years, massive gas fields have been discovered off the Mediterranean coast in Israel. However, the government imposes limitations on the volume of gas that can be sold overseas to ensure adequate supplies remain for future domestic needs.
The subject has been a hotbed of controversy for years and resurfaced in recent weeks after Israel’s budget director cautioned against excessive exports, flagging risks to the nation’s energy security. Israeli civil rights advocacy groups also warned of potential gas supply deficits as local demand burgeons and raised concerns over potential environmental repercussions due to increased activity in offshore fields.
Egypt is striving to position itself as a regional gas supply hub, selling its gas and re-exporting Israeli gas in the form of liquefied natural gas to the Middle East, Africa, and Europe.
