Israel has begun exporting additional natural gas to Egypt through a pipeline traversing Jordan, Israeli energy company NewMed Energy — formerly Delek Drilling — announced in a statement (pdf) to the Tel Aviv bourse and securities regulator. Chevron and NewMed, which operate Israel’s two biggest offshore reservoirs — the Tamar and Leviathan gas fields — are expected to export 2.5-3 bn cubic meters (bcm) of gas this year, the Israeli energy ministry said last month following an agreement announced by Israeli Energy and Water Minister Karine Elharrar. This could increase to 4 bcm in subsequent years, the ministry said.

This marks the first time Israel exports natural gas to Egypt via the Arab Gas Pipeline, which has been renovated in recent months as part of a plan to export natural gas from Egypt to crisis-stricken Lebanon via Jordan and Syria.

Israel currently ships gas to Egypt via the Eastern Mediterranean Gas (EMG) pipeline that runs between Ashkelon and Arish, which has an approximate annual capacity of 7 bcm.

All part of our east-Med energy hub ambitions: The Oil Ministry has been looking to increase the amount of gas it imports from Israel for re-export to Europe, which is in search of alternative suppliers to decrease its reliance on Russian gas. Late last year, the Madbouly government signed agreements with Greece and Israel laying the groundwork to up import and re-export volumes. That said, it’s not clear whether Egypt or the EU have the capacity to up their gas trade: Oil Minister Tarek El Molla said in December that Egypt’s Idku and Damietta LNG terminals are both running at full capacity while Europe doesn’t have catapacity at import terminals needed to significantly increase LNG imports.

Background: We first started importing gas from Israel in 2020 under a landmark USD 15 bn contract signed in 2018 that saw Egyptian firm Dolphinus agree to purchase 64 bcm over a 10-year period. In 2019, the two sides agreed to increase the supply to 85.3 bn bcm over 15 years.

IN OTHER ENERGY NEWS-

More Egyptian-Greek energy cooperation: President Abdel Fattah El Sisi held virtual talks with Greek Prime Minister Kyriakos Mitsotakis on Thursday to talk about electricity and gas interconnection projects, according to a presidential statement. The two countries are considering establishing a new subsea gas pipeline that would allow Egypt to export gas directly to Europe. Egypt and Greece are also working on the EuroAfrica connector, which will enable Cairo to ship surplus electricity across the Mediterranean via Cyprus,