Shell to help make Egypt a regional energy hub? Royal Dutch Shell is in talks to buy natural gas from Israel’s Leviathan field and Cyprus’ Aphrodite field and pump it to the Idku liquefaction plant in Egypt, sources told Bloomberg. “Talks are at an early stage and some of Aphrodite’s gas could be sold locally,” but “combining output from the fields … could potentially improve the economics of the projects.” Bloomberg points out the economic potential by noting that “Israeli and Cypriot gas finds, together with the giant Zohr field off Egypt and reservoirs off Lebanon, could create a center of gas production right on Europe’s doorstep.” The gas from Leviathan could be pumped to Egypt directly or via Jordan, the report adds.

As we’ve said before: Egypt has a multi-year, multi-bn USD advantage over anyone else looking to ship gas out of this neck of the woods, making Omm El Donia a natural regional petroleum hub. Throw in plans for a fuel bunkering facility at the mouth of the Suez Canal — it would be the only one on this side of the eastern Med — and things start to get even more interesting.

Separately, Shell shipped its first crude cargo from Libya in five years after lifting 600k bbl from Zueitina port, Reuters reports. The shipment is Shell’s first out of Libya in five years, two source said. Bloomberg also has the story.

And speaking of Israeli gas, a group led by Isramco Negev and Modiin Energy is giving up on its license to develop a 8.9 tcf Daniel gas field on the Mediterranean coast, citing a lack of interest from investors, says Reuters. The news could feed nicely into Egypt’s bid to become a regional export hub.