Page 29 - Issue 72

V O L .1 E L I T E ISSUE 72

First, we should evaluate the causes that another solution to address the crisis. These
made the Egyptian government sign this solutions indicate that the Egyptian
deal. One of the highlighted reasons is the government doesn’t rely only on this deal
energy crisis as a result of increasing local and it tries to solve this crisis in different
consumption of gas used in electricity ways. This can relatively decrease fears
production and to meet factories’ needs. related to the influence of Israeli gas on
This happened in the context of a decline in controlling the energy market in Egypt,

local production by more than 42% in May given that the quantity of Israeli gas imports
of this year compared to March 2021. This reaches 850 million cubic feet per day,
means that the gas deficit — the difference meanwhile local consumption reaches
between production and consumption — in around 6 billion cubic feet per day. This
Egypt is large, reaching 3.5 billion cubic means Israeli supplies represent only 12% of
meters per day, while Israel contributes 1 local consumption. I think this situation will
billion. Therefore, Egypt can’t end reliance not last long because of the huge amount of
on Israeli gas despite this contradicting its Israeli supplies, 130 billion cubic meters,
political agenda. This economic cooperation especially as the government deals with
can eliminate tensions between Cairo and Israeli gas as a replacement for LNG due to
Tel Aviv with regard to the Palestinian issue its lower cost, which can threaten Egypt’s
and the recent war on Gaza, and this aligns energy security and sovereignty.
with the concept of economic
interdependence from a liberal perspective.

From another perspective, Egypt seeks to
restore its regional and geopolitical role in
gas exports. Egyptian decision-makers
believe this can be achieved by importing

Israeli gas, then liquefying it and exporting
it to Europe via Edko and Damietta
stations.
This deal is one of the strategic solutions Another motivation is the desire to reduce
to solve the energy crisis during the absence gas prices by relying on a relatively cheaper
of new gas fields and the obsolescence of alternative, which is Israeli gas. This gas will
existing fields. Another solution that was be transferred in its gaseous form through

taken to solve this crisis is procuring four the Arish–Ashkelon Gas Pipeline, making it
regasification vessels and contracting dozens cheaper than LNG from Russia or Qatar.
of imported gas shipments to meet local Florence Schmit – Energy Analyst at
needs. Planning for interconnection with Rabobank – emphasized this by stating that 29
Cyprus to import gas also constitutes the initial quantities could reduce Egypt's