Page 26 - Issue 72
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V O L .1 E L I T E ISSUE 72
liquefied natural gas (LNG) imports by From my point of view and a realistic
between one and two billion cubic meters in perspective, these causes can be analyzed
2026, easing pressure on global LNG through the idea that rival states may make
markets, despite the increase in prices by economic deals even with each other if such
14% compared to last year. deals achieve strategic interests. Economy in
this situation is considered a tool to achieve
power and national interest.
After discussing the causes and relative
benefits of this deal, we now discuss some
points related to the expected cost of the
deal to be able to judge the rationality of
this decision. The highlighted point is the
huge amounts of gas which will be exported
by Israel and its effects, as it will increase
From this point, a question emerges in line Egypt’s dependence on Israeli gas. If this
with the current circumstances: how can supply is stopped for a long time, it could
Egypt spend 35 billion dollars during its disrupt segments of Egyptian industry, lead
economic crisis, the end of which is to power outages in cities, and noticeably
unknown? This must be considered when impact economic stability, despite efforts to
evaluating the expected economic benefits diversify supplies. The agreed amounts
of this deal. represent 22% of Leviathan reserves and
From the Israeli side, it is noticeable that about 13% of Israel's total gas capacity. The
Tel Aviv has no way to export its gas except danger of this was confirmed during the
through Egyptian liquefaction plants, in Israel-Iran war, which lasted for 12 days in
addition to its local demand being lower June, as Israeli supplies were stopped for
than its production. This somewhat ensures security reasons. The effects of this situation
Israel’s compliance with the deal. The deal were limited due to the short duration, but it
also enables Israel to extend the Leviathan highlights the possibility that Israeli supplies
Field, which positively affects its economy could be disrupted if war breaks out—a
and local gas production and enhances its possibility at any time given the intense
regional position in the Middle East. political tensions in the Middle East.
Furthermore, it can be considered an Israeli The drawbacks of this deal go beyond
victory as it creates long-term economic Egypt’s energy security and extend to its
linkages with Egypt, the most densely national security because of concerns that
populated Arab state. reliance on Israel for economic and energy
needs might be used as political leverage.
The likelihood of this increases, especially
given the tension dominating Israel’s
relationship with Egypt due to Egypt’s
rejection of the displacement issue and the
ongoing Gaza war.
Israel's announcement of this deal at this 26
particular time points to malicious attempts
