Saturday, February 24

Gas Is Flowing to Egypt From Israel After Halting Last Week


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(Bloomberg) — Natural gas is flowing to Egypt from Israel again, days after the North African nation reported a halt in imports, according to people with direct knowledge of the matter. 

The giant Leviathan field is exporting the fuel after the end of an outage at another Israeli field, Karish, meant the country’s domestic demand was met, said the people, who asked not to be named because the information isn’t public. Officials in Egypt weren’t available to comment. 

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Egypt’s natural gas imports had fallen to zero from 800 million cubic feet per day, the government said earlier this week, causing more of the power cuts that have plagued the country this year. Earlier in October, Israel shut its offshore Tamar gas field because of the fighting in Gaza, which also reduced onward shipments to Egypt.

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The market is closely watching whether the Israel-Hamas war will disrupt regional flows as the heating season in the northern hemisphere expands. Europe typically imports small volumes of liquefied natural gas from Egypt, which partially relies on supplies from Israel. 

However, unusually hot weather has meant Egypt was consuming all the gas that it was getting, leaving little for overseas shipments. Before the latest supply interruptions, the government’s plan was to resume exports to Europe in October. 

LNG exports from Egypt would revive once domestic demand for cooling subsides, Eni SpA, which has operations in the nation, has said. The country’s energy needs are “much less” during the winter and Eni is likely to be able to export LNG from November, Chief Executive Officer Claudio Descalzi said Wednesday. 

Gas production from the Karish field returned to normal output rates on Tuesday following a brief outage last week, a representative for the field’s operator Energean said Wednesday. 

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financialpost.com