Page 47 - Issue 71

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Since late 2023, Egypt has been facing that Egypt imported 14.612 bcm of natural gas
mounting energy challenges. After several in 2024. Of that, around 10.14 bcm—
years of rising natural gas production and approximately 69.4%—came from Israel,
exports—driven by significant discoveries according to the industry publication Mees. The
—output has now declined to its lowest remainder was LNG, primarily sourced from
level in eight years. This downturn is Qatar. These LNG imports are especially costly
attributed primarily to water infiltration due to their higher prices compared to piped gas,
issues in the Zohr field, Egypt’s largest and because Egypt had to rent a Floating
gas reserve, and to falling output in Storage and Regasification Unit (FSRU) to
onshore areas due to underinvestment. handle them.
Energy firms have reportedly been Egypt has long aspired to be a regional hub for
reluctant to invest without a substantial natural gas, leveraging local production as well

price increase above the outdated $2.65 as gas from Israel and Cyprus to supply LNG
per million BTU that Cairo offers to markets. However, that vision is increasingly in
producers onshore. This situation reflects doubt. The current production slump highlights
a lack of long-term strategic planning in Egypt’s failure to establish a coherent and
Egypt’s energy policy. sustainable energy policy, and high domestic
To meet domestic demand, Egypt demand further exacerbates the strain. Investor
returned to importing natural gas—both confidence has also been shaken in part due to
via pipelines from Israel and through suspicions that Egypt has inflated its proven gas
LNG shipments—thus becoming a net reserves to attract capital. These doubts were
gas importer for the first time since 2018. reaffirmed when Zohr’s proven
JODI data show

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