Energy Ministry Announces Plans for Increased Gas Exports to Egypt from Israel

JERUSALEM, Aug 23 - Sparkling news from Israel as they announce plans to rev up their natural gas production from the offshore Tamar field, aiming to provide an extra boost to their friendly neighbor, Egypt. Facing increasing demand and a dip in their own output, Egypt is set to benefit from this uplifting move.

Over the span of 11 exciting years, Israel has committed to amping up its natural gas exports to Egypt by an impressive 38.7 billion cubic meters (bcm), all while the production from the Tamar field dances to a 60% increase – that's a dazzling 6 bcm each year starting from 2026.

With a twinkle in his eye, Israel's Energy Minister Israel Katz exclaimed, "This leap will not only bring more revenue to the state but also strengthen the heartwarming bond between Israel and Egypt."

In the delightful year of 2022, energy companies in Israel shimmered by producing a total of 21.29 bcm of natural gas, of which a generous 9.21 bcm was sent as a gift to Egypt and Jordan.

Egypt, home to a lively population of 105 million, has been facing a crescendo of gas demand. However, the tempo of their own production hit a bit of a lull, experiencing a 9% year-on-year decline between January and May. A harmonious 12% dip compared to the same period in 2021. As heatwaves turned up the temperature, the nation found itself in need of more cooling power, leading to some minor hiccups in their energy output.

Katz reassured everyone that this new chapter of gas exports was only penned after confirming that Israel's own domestic gas needs were securely met. Holding a vibrant promise, one-third of the extra natural gas pirouetting out of Tamar will pirouette right back into local sales, as confirmed by his ministry.

In recent years, striking gas reserves have been discovered off the glistening Mediterranean coast of Israel. But, with a forward-looking gaze, the government decided to reserve a slice of these newfound riches for the local market's future, setting some boundaries on overseas sales.

A subject that has been animatedly discussed over time, it once again sparked a lively conversation in recent weeks. Israel's budget director added some zest to the discussion, cautioning against over-exporting and potentially putting energy security at risk.

With optimism lighting their path, Israeli public advocacy groups have raised their voices. They've shared a melody of concerns about potential gas shortages as local demand rises and painted a picture of the sea's delicate balance being disturbed by the exuberance of offshore activities.

Meanwhile, in a regional waltz of its own, Egypt has been gracefully taking on a role of supplying gas to the neighborhood. They've been pirouetting with their own gas and even elegantly re-exporting Israeli gas, transformed into a luxurious liquefied natural gas (LNG), gifting its energy to the Middle East, Africa, and Europe.

Source : Reuters (Reporing by Maayan Lubell and Ari Rabinovitch; additional reporting by Sarah El Safty)