Israel, Egypt to expand gas pipeline infrastructure

The Israeli government has approved a plan to expand the infrastructure networks for transporting natural gas to Egypt, the Globes newspaper reported on 8 May.

The plans include building a 65-kilometer pipeline from Israel to the border with the Sinai Peninsula, with the aim of increasing the volume of gas supply to Egypt.

According to the Globes, “The development will enable the infrastructure in this part to increase the volume of natural gas supply to Egypt, as well as to Europe, which suffers from energy shortages due to the Ukrainian crisis.”

The new gas pipeline will be able to transport 6 billion cubic meters (bcm) of gas annually, with a value of about $57 million. The cost of building the pipeline is estimated at $257 million.

Israeli gas transported by pipeline is not meant for Egyptian consumption, as the Arab nation is able to meet its domestic needs from its own sources. Rather, the Israeli gas is converted to liquefied natural gas (LNG) at Egyptian facilities for further delivery to Europe by ship.

In June 2022, Israel and Egypt signed a memorandum of understanding with the EU, the first to allow “significant” exports of Israeli gas to Europe, Israel’s energy ministry said at the time.

Under the agreement, the EU encouraged European companies to participate in Israeli and Egyptian exploration tenders, the ministry said.