Former Egyptian Minister of Petroleum, Eng. Osama Kamal, revealed the proactive measures taken by Egypt to address the challenges posed by regional tensions on energy supplies, especially following the halt of Israeli gas supplies.
Kamal explained that Egypt moved swiftly to bridge the gap between its natural gas production and consumption by enhancing its logistical capabilities. This involved expanding its contracts from one Floating Storage and Regasification Unit (FSRU) to three specialized vessels, each capable of injecting between 600 to 750 million cubic feet per day (MMcf/d) of gas. He noted that one of the vessels has already begun operations, with the other two expected to enter service within days, which will help compensate for a significant portion of the halted Israeli gas supplies, which amounted to one billion cubic feet per day (Bcf/d).
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shortages, clarifying that Jordan currently receives only 100 MMcf/d, which is less than half of its agreed share (350 MMcf/d), under an agreement signed in December 2024. He affirmed that this quantity comes from Jordan's share in an FSRU that was transferred from Aqaba port to Ain Sokhna, where the liquefied gas is regasified. He emphasized that Egypt is not exporting additional gas from its own share but is committed to sharing the vessel's output as per the agreement. He added that "when the vessel operates at full capacity, Jordan will regain its full share, Egypt will regain its share, and things will return to normal."
Local energy challenges and measures taken
Egypt heavily relies on natural gas for its electricity needs, with power plants consuming approximately 4 Bcf/d in winter and 5 Bcf/d in summer. With the decline in production from the "Zohr" field – which accounts for 38% of Egypt's gas production – to about 4 Bcf/d from its peak of 7 Bcf/d, the country has faced challenges in bridging the gap between production and consumption.
To address this crisis, the government has taken proactive measures, including:
Bringing forward maintenance for some factories: To reduce pressure on the grid.
Enhancing infrastructure: By adding two liquefaction plants in Damietta and Idku, in addition to the FSRUs.
Signing international agreements: Such as the agreement with Cyprus to convert Cypriot gas into LNG via Egyptian infrastructure, which strengthens Egypt's position as a regional energy hub.
Kamal warned that the continuation of regional tensions could lead to a global increase in oil prices, noting that the price per barrel could reach $85 if the crisis persists for a week. He confirmed that Egypt's reserves of gas, mazut, and diesel are sufficient to cover electricity needs for two weeks, with expectations of a resolution to the regional conflict during this period. He indicated that the current preparations undertaken by the Egyptian government, including the operation of the three FSRUs, will ensure the sustainability of energy supplies until Israeli supplies resume or alternative solutions are found.