Egypt has not signed a new agreement to import Israeli gas, clarified Moataz Atef, the Undersecretary for the Minister’s Technical Office and Official Spokesperson of the Ministry of Petroleum and Mineral Resources, during a prime-time talk show on Friday night.
His comments came in response to media reports suggesting Egypt had entered a new $35 billion deal to import gas from Israel through 2040. Atef explained that this is not a new agreement, but rather an extension of an existing 2019 deal.
Atef emphasized that the deal comes as part of Egypt’s strategy to secure its gas supply. This includes offering incentive packages to gas explorers and decreasing the natural decline in domestic gas fields
Leasing Floating Storage and Regasification Units (FSRUs) is another track in the plan, which, according to Atef, now provides a combined regasification capacity of 2,250 million cubic feet per day (mmcf/d)
“We also agreed on the EGYPES 2025 export gas from Cyprus’ Cronos and Aphrodite fields; the deal will materialize in the medium term,” he said, adding that Egypt also have plans to source gas from the broader East Mediterranean region.
Reacting to a question by the program’s host about the long duration and the big value of the deal, Atef said that the Egyptian government is working to secure long-term contracts to ensure the stability of the strategic energy supply. However, he had reservations about the value of the agreement, saying it is yet to be finalized.
