Instead of Europe, there will be Egypt: Israel has decided on the largest buyer

Due to the shortage of gas, Egypt has signed contracts for the supply of LNG, but in the future it plans to significantly increase imports of Israeli gas — almost threefold.

The Israeli company NewMedEnergy announced that the contract for the supply of gas from the Israeli Leviathan field to Egypt has been changed. Its volumes have increased dramatically.

So, the first change concerns that the capacity of the Ashdod-Ashkelon gas pipeline will be increased and annual gas supplies will increase from 4.7 billion cubic meters to 6.7 billion cubic meters.

Also, the Leviathan participants are going to increase production and the second change concerns the growth of supplies to 12.9 billion cubic meters per year. But it depends on the final investment decision, which has not yet been made.

Earlier, gas production in Egypt declined sharply and the country again became an importer of fuel. Because of this, Egyptian companies had to book large LNG shipments and urgently install four floating LNG terminals.

In turn, Israeli gas has been supplied to Egypt since 2019. The largest shareholder of the Leviathan project is NewMedEnergy. It also includes American Chevron (39.66%) and Ratio (15%).

NewMedEnergy noted that exports are planned taking into account gas consumption in Israel.

Previously, companies had made plans to export LNG through Egypt and build a gas pipeline to EU countries. However, high construction costs and a shortage of gas in Egypt have changed plans.