Egypt Approves $400 Million Investment in Israel Gas Pipeline
Egypt has approved construction of a pipeline connection to link with Israel’s planned Nitzana pipeline, representing a $400 million investment following the massive $35 billion gas deal with Leviathan partners. The development will enable increased gas exports from Israel to meet Egypt’s growing energy demands.
Egypt has transitioned from a net exporter to a net importer of natural gas, consuming 60 billion cubic meters in 2024 while producing only 47.5 billion cubic meters. The country is interested in becoming a regional energy hub by importing gas from regional countries, liquefying it locally, and then exporting liquefied gas to world markets.
The Leviathan partners, including US energy major Chevron as operator, Israel’s NewMed Energy as the largest shareholder, and Israeli company Ratio, have committed to significantly increase gas production and expand export infrastructure to Egypt. The 65-kilometer Nitzana pipeline in Israel is expected to be approved within two weeks, with gas flow anticipated by 2028.
Egyptian Prime Minister Mostafa Madbouly announced that the country expects to resume gas exports only in 2027, highlighting the critical importance of Israeli gas imports to bridge the supply gap and meet domestic demand in the interim period.
Source: en.globes.co.il
