Energy
Tuesday, October 10th, 2023 3:21 pm EDT
Key Points
- Egypt is evaluating the potential impact of the stoppage of gas production at an Israeli field on its plans to resume liquefied natural gas (LNG) exports to Europe. Egypt aims to become a regional gas hub and has been exporting LNG to Europe using gas from domestic production and offshore fields in Israel.
- The recent attack by Hamas on Israel led to Chevron, the operator of the Tamar gas field offshore southern Israel, shutting down production at the field as instructed by the Israeli energy ministry. This development has raised concerns about the disruption of gas supply to Mediterranean countries, causing Europe’s benchmark natural gas futures prices to surge.
The article discusses how Egypt is evaluating the potential impact of the stoppage of gas production at an Israeli field on its plans to resume liquefied natural gas (LNG) exports to Europe. Egypt aims to become a regional gas hub and has been exporting LNG to Europe using gas from domestic production and offshore fields in Israel.
However, Egypt faced interruptions in LNG exports in June, August, and September due to high domestic power demand during the summer. The recent attack by Hamas on Israel led to Chevron, the operator of the Tamar gas field offshore southern Israel, shutting down production at the field as instructed by the Israeli energy ministry.
The shutdown of the Tamar field could affect Egypt’s LNG export plans, raising concerns about gas supply to Mediterranean countries. Europe’s natural gas futures prices surged following the news of the field shutdown.
Egypt’s plans to resume LNG exports in October may be impacted, depending on how the situation unfolds with the Israeli gas fields. The government of Israel had not informed Egypt about plans to suspend gas production at the giant Leviathan field as of the article’s publication.
For full original article on Oilprice.com, please click here: https://oilprice.com/Latest-Energy-News/World-News/How-The-Hamas-Attack-On-Israel-Could-Derail-Egypts-LNG-Export-Plans.html
