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Natural gas

Egypt to Construct $400 Million Natural Gas Pipeline

Strategic Insights

— 1 min read

Egypt's government is advancing plans to build a new natural gas pipeline, valued at around $400 million, to handle additional imports from Israel. The pipeline will be constructed within Egypt's territory and managed by the state-owned Egyptian Natural Gas Company (Gasco) once engineering plans are completed. The project aims to strengthen Egypt's position as a regional gas hub, enabling the country to re-export Israeli gas to European and Asian markets.

Key Takeaways:

  • The new natural gas pipeline, valued at $400 million, will be constructed within Egypt's territory to handle additional imports from Israel.
  • The project will be managed by the state-owned Egyptian Natural Gas Company (Gasco) once engineering plans are completed.
  • Funding for the pipeline will come from the Egyptian government, while NewMed Energy will extend infrastructure to the border to connect with the new system.
  • The expanded pipeline capacity will enable Egypt to re-export Israeli gas as liquefied natural gas (LNG) to both European and Asian markets.
  • The new framework outlines two phases of gas deliveries, with an initial delivery of about 20 billion cubic meters, followed by up to 110 billion cubic meters in later stages.
  • The updated supply deal between Cairo and NewMed Energy includes an additional 130 billion cubic meters of natural gas through 2040.
  • The pipeline expansion is expected to bolster Egypt's role as a regional gas hub and enhance its energy export capabilities.
  • Officials estimate that the new pipeline will enable Egypt to re-export Israeli gas to European and Asian markets, making the country a key player in the global LNG market.

Statistics:

  • The new natural gas pipeline is valued at around $400 million.
  • The pipeline will have a capacity to handle an additional 130 billion cubic meters of natural gas from Israel through 2040.
  • The updated supply deal includes an initial delivery of about 20 billion cubic meters, followed by up to 110 billion cubic meters in later stages.
  • The pipeline expansion is expected to enable Egypt to re-export Israeli gas to both European and Asian markets.

Sources:

  • Agenzia Nova
  • Global Data Point

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