Egypt Hits Israeli Gas Import Ceiling Amid Energy Price Worries
Gas flows from Israel's Leviathan and Tamar fields to Egypt have reached their physical ceiling, according to an unnamed government official. The emergency increase follows a drone strike that took the Energos Winter regasification unit offline last Wednesday.
The revised gas supply agreement outlines a phased increase in Israeli exports to Egypt, starting with an additional 200 mmcf / d, rising to 400 mmcf / d by January 2027 and 600 mmcf / d by January 2029. However, the final phase depends on building a new pipeline and compression station.
The government is weighing two options to manage its energy bill: reinstating its capped fuel pricing mechanism or freezing prices at the pumps and forcing heavy industry to cover the difference in market prices. The decision rests on the stability of global oil prices, import volumes, and the EGP exchange rate.