Egypt Assures Gas Supply Amid Regional Tensions Following Israeli Field Closures

Alanbatnews -

Egypt has affirmed its energy security measures amidst escalating regional tensions and the temporary closure of Israeli gas fields. The Egyptian government insists it has secured strategic reserves of petroleum products.

Prime Minister Mostafa Madbouly convened a meeting with the ministers of finance, electricity, and petroleum to assess the energy sector's preparedness. The meeting addressed securing the domestic market's supply of gas and petroleum products. Madbouly emphasized the critical importance of maintaining secure strategic reserves of petroleum products for various uses, along with providing the necessary financial resources to complete energy sector projects.

Kareem Badawi, the Minister of Petroleum and Mineral Resources, outlined proactive steps taken to ensure diverse supply sources, including domestic production, liquefied natural gas (LNG) imports, and long-term agreements with international companies. He underscored the readiness to secure the gas supplies needed for the electricity sector and to maintain safe strategic reserves of gasoline, diesel, and butane.

These assurances follow an announcement from Israel regarding the temporary halt of gas exports to Egypt and the closure of parts of its natural gas reservoirs, including the Leviathan field operated by Chevron. This action has prompted concerns about potential disruptions to Egypt's energy supply, particularly given the backdrop of heightened regional instability.

Egypt imports Israeli gas under a 2019 agreement, recently amended to supply 130 billion cubic meters of gas worth $35 billion until 2040. The daily supply averages 1.8 billion cubic feet.

Experts note that Egypt began diversifying its gas sources after production declines and has since entered into several contracts and imported gasification vessels to ensure that local market needs are met and are not affected by any new developments.

QatarEnergy announced an agreement last month with the Egyptian Natural Gas Holding Company (EGAS) to supply 24 LNG shipments to Egypt during the summer of 2026.

Egypt's daily natural gas needs are approximately 6.2 billion cubic feet, with current production at about 4.2 billion cubic feet per day. The Egyptian Prime Minister expects gas production to reach 6.6 billion cubic feet per day by 2027.

Concerns remain about the potential impact of a prolonged conflict on global oil markets. Some experts warn of potential disruptions to global shipping and rising oil prices, which could increase Egypt's import bill for oil and gas.