Tamar shutdown affects Egypt gas supply
12 October 2023
Israel’s gas shipments to Egypt have fallen by 20 per cent after the shutdown of Israel’s offshore Tamar gas field.
Halting the Tamar field in the Mediterranean Sea reduced Egypt’s imports of Israeli gas to about 650 million cubic feet per day, according to industry sources.
One source said: “It is still too early to say what the exact impact of the cut will be but we are expecting most projects to continue as normal.”
It is believed that Egypt may have to reduce its liquified natural gas (LNG) exports to Europe as a result of the shutdown.
Additionally, the US oil company Chevron has halted natural gas exports through a major EMG subsea pipeline between Israel and Egypt and is supplying gas via an alternative pipeline through Jordan, according to a statement released by Israel’s energy ministry.
The timing of this loss of gas imports to Egypt is likely to prove difficult for the North African nation, which has, over recent years, been attempting to position itself as a regional energy hub.
Egypt witnessed frequent power cuts throughout the summer months due to a shortage of gas to supply its own power plants.
At the same time, the country is facing a severe debt crisis, meaning that the foreign currency LNG exports bring in is of increased importance to the economy.
In 2022, Israel exported 5.81 billion cubic metres of gas to Egypt, a record high.
Egypt, Israel and the European Union also signed a “historic agreement” in June last year to boost gas exports to the EU, and in August, Israel approved a further increase in gas exports to Egypt.
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