Reports in Egyptian and Israeli media suggest that Cairo is considering importing Qatari gas after a major gas deal with Israel stalled for nearly three months.
On 3 September, the Israeli newspaper Israel Hayom reported that Prime Minister Benjamin Netanyahu had ordered that the “vital” gas agreement with Egypt should not move forward without his personal approval. The report followed Israeli claims that Egypt had violated the security annex of the 1979 peace treaty by increasing military deployment in Sinai — allegations Cairo has firmly denied.
The stalled agreement dates back to 7 August, when the Israeli newspaper Maariv reported that NewMed Energy had announced the signing of a new deal to supply gas to Egypt from the Leviathan field. Under the agreement — described as Israel’s largest — 130 billion cubic metres of gas were to be exported to Egypt through to 2040, at a value of USD 35 billion. The deal would have expanded the existing 2019 arrangement, which covers 60 billion cubic metres.
However, on 2 December, Israel’s Channel 12 reported that, in light of the freeze on the Israeli deal, Qatar is seeking to seize the opportunity by offering Cairo a substantial supply of liquefied natural gas (LNG). Doha reportedly aims to strengthen its presence in the Egyptian market, one of the region’s largest gas importers.
Neither Cairo nor Doha has issued an official statement on the matter. But on 4 December, the Egyptian news site Cairo 24 quoted an official at the Ministry of Petroleum and Mineral Resources as saying that “there is a possibility that Qatar may provide unlimited support for Egypt to import gas instead from Tel Aviv.”
“Join the companies that smart energy professionals follow – because when you’re featured on OGV, the industry pays attention.”
