Egypt Launches Efforts to Address Energy Crisis

Egypt is multiplying efforts in its quest to reduce its dependence on expensive natural gas imports. Once a net natural gas exporter to Israel and Jordan, Egypt is now undergoing a severe energy crisis at home due to a growing demand, a flat production and ongoing export obligations. The country is exploring various options to reduce its spiking energy bill and secure a reliable source of energy. State-owned EGAS is set to launch seismic 2D and 3D surveys that will be conducted by Norwegian PGS to explore the country’s offshore hydrocarbon potential.

Egypt is also looking to import natural gas from its Eastern Mediterranean neighbours. The country is engaged in talks to import the hydrocarbon from Israel and Cyprus. Major discoveries off the shores of Israel and the island of Cyprus have promised to turn the countries into net natural gas exporters. Geographical proximity would allow the delivery of Israeli and Cypriot gas to Egypt via pipeline. Egypt’s neighbours are also exploring the possibility of using Egypt’s unused export terminals to reach far-reaching markets.

Egypt has an increasingly important role in the region, not only as a customer for East Med gas and a possible route, but also as a potential producer of natural gas should the seismic surveys indicate the potential existence of recoverable hydrocarbon resources in Egyptian waters. In a recent meeting that took place in Israel, a Cypriot and an Israeli delegations explored the possibility of merging pipelines to export gas from the island and Israel to Egypt.  

Karen Ayat is an analyst and Associate Partner at Natural Gas Europe focused on energy geopolitics. Karen is also a co-founder of the Lebanese Oil and Gas Initiative (LOGI). She holds an LLM in Commercial Law from City University London and a Bachelor of Laws from Université Saint Joseph in Beirut. Email Karen karen@minoils.com Follow her on Twitter: @karenayat