Egypt to construct $400M gas pipeline for Israeli imports

CAIRO, Egypt (MNTV) — Egypt has approved plans to construct a $400 million natural gas pipeline to increase imports from Israel, as the country faces rising domestic demand and declining local production, according to government sources.

The project will be carried out by the Egyptian Natural Gas Company and will remain entirely within Egypt’s territory, the Saudi-based Asharq Business reported, citing two Egyptian officials familiar with the matter.

The decision follows an amended supply agreement with NewMed Energy, operator of Israel’s Leviathan gas field, and Egypt’s state-backed Blue Ocean Energy. 

Under the new terms, gas imports could expand significantly, from the current 4.5 billion cubic meters annually to as much as 12.5 billion cubic meters by 2029, depending on the progress of infrastructure projects.

“Egypt intends to launch construction of the new pipeline in the final quarter of this year to accommodate additional volumes from Israel,” Asharq Business reported.

The North African country, once a notable gas exporter, has shifted to net importer status due to surging energy demand and declining output. 

Prime Minister Mostafa Madbouly said in August that fresh projects and new contracts with international oil majors are expected to raise production and enable Egypt to return to export capacity by 2027.

While the projects are to serve the Egyptian and Israeli economies, they are carried while a genocide is happening in Gaza at the hands of Israel. 

Israel is facing a strong backlash from the global fraternity for its operation inside Palestine, and an artificial man-made famine in Gaza by blocking food and medical aid to the territory.