Israel Delays Gas Exports to Egypt Amid Price Disputes and Summer Demand Surge
Tel Aviv Pressures Cairo to Raise Gas Prices as Egypt Races to Secure LNG Supplies for Peak Consumption Season.
Watan-In a surprising development, Israel has postponed the pumping of additional quantities of natural gas—agreed upon with Egypt’s Ministry of Petroleum—amounting to around 200 million cubic feet per day, from early this week to the beginning of June.
A senior official at the Egyptian General Petroleum Corporation (EGPC) said the Israeli gas company is pressuring the corporation to amend supply terms and raise prices, exploiting peak summer demand when electricity consumption spikes due to high temperatures.
According to the source, Israel recently completed a 46-km expansion of the marine gas pipeline linking the Ashdod and Ashkelon ports, which connects to the East Mediterranean Gas (EMG) pipeline and Egypt’s national gas network in Arish. This expansion was meant to increase exports for re-liquefaction at the Idku and Rosetta terminals and raise Egypt’s imports from 1 to 1.2 billion cubic feet daily.
Israel Delays Gas Flow as Egypt Scrambles to Secure Summer Energy Needs
Meanwhile, Egypt is requesting 14 liquefied natural gas (LNG) shipments from European and American suppliers this month—previously agreed upon with deferred payment terms—to meet growing summer energy demand and offset supply shortages.
This delay coincides with unmet commitments from Italian company ENI to deliver 250 million cubic feet daily from the newly developed Zohr field, with production delayed from April to late August 2025, exacerbating a natural gas shortage for power stations, factories, and households.
Israel, meanwhile, is pressuring to raise the price per million British thermal units (BTU) to over $8—$1.3 higher than Egypt’s local gas sale price to industries—despite a global trend of declining fossil fuel prices projected for 2025–2026.
Egypt Faces Gas Supply Risks Amid Currency Strain and Rising Dependence on Israeli Imports
Mohamed Saad El-Din, Vice President of Egypt’s Petroleum Chamber, emphasized that Egypt can still maneuver in global markets due to falling fuel prices and full European gas reserves. However, any price change would depend on the original contract terms and Egypt’s ability to finance purchases in USD.
He warned that a weaker Egyptian pound against the dollar would negate the benefits of lower global prices, increasing domestic costs and subsidy burdens.
The World Bank forecasts a 17% drop in global energy prices this year and an additional 6% by 2026, with Brent crude stabilizing at $64 per barrel in 2025. Spot LNG cargoes in May ranged between $11.30 and $13.20 per million BTU, with prices expected to drop due to lower demand in Asia and increasing U.S. production.
A technical analysis by petroleum economist Mohamed Fouad revealed Egypt aims to raise $7 billion to buy 155–160 LNG shipments in 2025 on deferred payment terms, with contracts involving Shell, TotalEnergies, and others at prices not exceeding $14 per million BTU.
Since April 2024, due to plummeting domestic gas production, Egypt has depended increasingly on Israeli gas. Imports rose from 981 million to 1.15 billion cubic feet per day by January 2025 and are expected to increase by up to 58% in the peak months of July and August.
However, the Ministry of Petroleum remains concerned about a repeat of the supply suspension that occurred after Israel’s October 2023 assault on Gaza, which halted operations at the Tamar gas field, slashing supply from 1.1 billion to 850 million cubic feet daily.
The original agreement between Egypt’s Dolphinus and Israel’s Delek and Noble Energy in 2018 outlined exports of 64 billion cubic meters over 10 years worth $15 billion. It was amended in 2019 to increase the volume to 85.3 billion cubic meters annually, raising the contract value to $19.5 billion.
