Egypt's Gas Network Under Siege as War Drives Up Energy Prices

The ongoing US-Israeli war on Iran has put Egypt's gas network to the test. The Israeli Energy Ministry shut down the Leviathan field and other gas facilities for security reasons, halting supplies that had been flowing to Egypt. However, the field resumed operations after a month-long shutdown.

The crisis was further exacerbated by disruptions in liquefied gas facilities in the Gulf and shipping through the Strait of Hormuz, driving up energy prices and the cost of making up Egypt's shortfall from international markets. Prime Minister Mostafa Madbouly stated that the monthly gas import bill had risen from about $560 million to $1.65 billion since the war began.

A fire broke out at the Port of Damietta on July 29, further intensifying the pressures the war has placed on Egypt's gas sector. The incident has disrupted one of the facilities Egypt relies on to receive, store and regasify liquefied gas before feeding it into the grid.

The crisis has been compounded by domestic production falling to less than 4.4 billion cubic feet per day, while Egypt is expected to import an average of about 2.96 billion cubic feet per day through pipelines and LNG cargoes between July 2026 and June 2027.