Egypt Imports Rare LNG Cargo Amid Scarcity of Israeli Gas

Egypt received its first LNG shipment after several months, as poor Israeli gas supply caused prolonged power outages across Egypt, pushing its government to find alternative energy sources. S&P Global Commodity Insights' shipping data indicates that Egypt welcomed the LNG cargo at its Ain Sukhna Terminal in the Red Sea. Generally, Egypt has infrequent LNG importations, with its last delivery of a 60,000 mt cargo documented in July, according to S&P Global data. The LNG vessel, Maran Gas Kalymnos, sailed under the Greek flag and docked at the Gulf of Suez terminal on November 3 with an LNG and oil cargo. The ship's contents have been unloaded, and it is currently moored. The European gas market has experienced tight conditions in the past weeks following the Israel-Hamas war that commenced on October 7. Israel has been a significant regional gas supplier since 2020 and is one of the main sources of pipeline gas for Egypt's LNG liquefaction terminals. The declining gas balance in Egypt due to production deficits in 2022 and 2023 also led to increased domestic consumption of Israeli gas. However, a hiatus in Egyptian gas imports ensued after the Chevron-operated gas platforms Tamar and Leviathan ceased operations following the Hamas attack on Israel. This raised uncertainties about the nation's LNG functions. On October 29, an Egyptian cabinet spokesperson confirmed that gas imports from Israel hit zero, which was previously at a daily rate of 800 MMcf. Platts, a division of S&P Global Commodity Insights, evaluated the DES Middle East Marker for December at $15.063/MMBtu.