Watan-Economic sources have confirmed a 15% increase in Israeli gas imports to Egypt, despite the brutal Israeli war against Gaza and significant economic losses suffered by the Israeli economy as a result. Activists are questioning what President Abdel Fattah al-Sisi offered in return for this support.
According to a report translated by the website “menafn,” the current levels of Israeli gas supplied to Egypt have exceeded pre-war levels in Gaza. In January, there was a 15% monthly increase, reaching approximately 1.15 billion cubic feet per day.
The report quotes an unnamed Egyptian government official who emphasized the importance of these imports from Israel in assisting the Egyptian regime, which is facing a shortage of foreign currency liquidity, to increase its exports and secure much-needed hard currency.
Increase in Gas Imports to Israel
The official stated that the volume of gas imports from the Israeli occupation to Egypt reached an average of 1.15 billion cubic feet per day since the beginning of 2024, compared to around 1 billion cubic feet per day in December 2023.
Sources mentioned that the Egyptian regime relies primarily on Israeli gas to meet part of its domestic demand, exporting the surplus in the form of liquefied natural gas through the liquefaction plants in Idku and Damietta, mainly to Europe, with a production capacity of up to 2.1 billion cubic feet per day.
In October 2023, Egypt’s imports of Israeli gas sharply decreased due to the suspension of gas production from the Tamar field following the Israeli war against Gaza, dropping to around 350 million cubic feet per day from over 900 million before the field’s production ceased on October 8.
As for Egyptian liquefied gas exports, which mainly go to European countries, they reached about 3 million tons during the first half of 2023, according to the Egyptian Minister of Petroleum Tarek El Molla.
Escalating Economic Pressures in Egypt
El Molla stated in a press statement that he expects the export quantities in the first half of this year not to be less than what was achieved in 2023. These exports amounted to 8 million tons in 2022, earning Egypt $8.4 billion.
Bloomberg, in a report translated by “Watan,” confirms that economic pressures in Egypt are escalating, posing challenges for the most populous country in the Middle East. The Egyptian pound continues to decline in the black market, now standing at less than 50% of its official price. At the same time, Moody’s Investor Services lowered its credit outlook for the country last week.
Moody’s stated that the risk of debt restructuring has increased, even if it is not likely in the near term.