Egypt rushes to find alternative for Israeli gas to avert energy crisis

Egypt is rushing to find ways to substitute natural gas supplies from Israel as the flows were halted due to the escalating tensions in the Middle East. The government, concerned about possible large-scale power blackouts, is preparing to issue a tender to purchase fuel, with delivery planned for August. 

Israel has shut down the work of two major gas fields, including Leviathan, thus slashing flows to Egypt, where domestic gas production covers only 60% of needs. The situation is aggravated by the seasonal uptick in electricity demand.

Riccardo Fabiani of International Crisis Group notes that Egypt’s dependence on imported gas is unlikely to change in the short term. Therefore, the country will have to ramp up purchases of liquified natural gas and seek new suppliers. At the moment, Egypt is in talks with Qatar over long-term contracts.