Egypt’s gas production dwindled by 10% yoy in the first 8 months of 2023, a decline of 4.5 bcm in absolute terms. this steep decline is reflective of the country’s aging gas fields and growing upstream issues.
The ramp-up of Israeli piped gas (up by 50%) partly compensated for the lost domestic production, adding just over 2 bcm to Egypt’s gas supply mix.
With the Tamar field now being shut for almost a month, Israel’s own gas production plummeted by an estimated 40% (or 0.8 bcm) in October, leading to lower piped gas exports to Egypt.
According to media reports, Israeli piped exports to Egypt dropped by 70-80% compared to the first eight months of 2023, translating into a decline of over 0.5 bcm month-on-month.
Lower Israeli piped gas deliveries will ultimately weigh on Egypt’s export capabilities this winter. Egypt exported around 4.5 bcm of LNG to Europe during the 2022/23 heating season.
Considering the upstream issues in the country and the reduced Israeli piped gas availability, Egypt’s LNG exports are most likely to dry up this winter, adding to a tighter winter gas balance in Europe.
What is your view?
How will Egypt’s gas and LNG production evolve this winter? How could be Tamar impacted by a prolonged shut-in?
Source: Greg Molnar
Online platform for sharing analysis and information on Global and regional LNG markets. Weekly newsletter each Wednesday more info
Sign up to receive our weekly newsletter with new LNG market reports, presentations & analysis. Every Wednesday!
By signing up, I agree to our TOS and Privacy Policy.
© 2020 GlobalLngHub | All Rights Reserved
