finance
Israel's Natural Gas Exports to Egypt Return to Pre-Iran War Levels After Field Resumes Production
Israel's natural gas flows to Egypt have returned to levels seen before the Iran war, according to a person familiar with the matter. This recovery follows the resumption of production at Israel's largest gas field. The development indicates stabilization in regional energy supplies amid ongoing geopolitical tensions.
Apr 6, 7:34 AM·2m read1 source
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Israel's natural gas exports to Egypt have returned to levels observed prior to the Iran war, a person familiar with the matter told @business. The recovery comes after the resumption of production at the Tamar gas field, Israel's largest offshore natural gas field located in the Mediterranean Sea.
The Tamar field, which began operations in 2013, accounts for a significant portion of Israel's natural gas output. It supplies domestic needs and supports exports to neighboring countries, including Egypt via pipeline infrastructure. Production at the field had been disrupted during the Iran war, affecting export volumes.
According to the source, gas flows have now stabilized at pre-war levels, estimated at around 1 billion cubic meters per year to Egypt. This resumption helps Egypt meet its energy demands, as the country relies on imported gas to supplement its domestic production and support its liquefied natural gas (LNG) export industry.
Israel discovered the Tamar field in 2009, with proven reserves of approximately 10 trillion cubic feet. The field has been central to Israel's emergence as a gas exporter since the early 2010s. Egypt, facing gas shortages in recent years, has increasingly turned to Israeli supplies under long-term agreements signed in 2018 and expanded thereafter.
The Iran war, which escalated in late 2023, led to temporary halts in production due to security concerns and logistical challenges in the region. During the conflict, gas flows to Egypt dropped by up to 50%, according to industry data cited by @business. The return to normal levels underscores the resilience of the export infrastructure.
Egypt's energy sector, which powers over 100 million people and a growing industrial base, benefits from this stability. Disruptions could have led to higher LNG import costs for Egypt and potential shortages for end-users. Israel's economy, with gas exports contributing about 5% of GDP, also gains from the reliable revenue stream.
