The European Union (EU) is counting on Egypt to continue to deliver a relatively high volume of liquefied natural gas (LNG) to Europe, says EU Energy Commissioner Kadri Simson. In a recent statement, Simson shared her hopes for the country to keep up its deliveries of LNG to Europe, as long as certain bottleneck issues can be resolved.
The EU and Egypt signed a Memorandum of Understanding (MoU) last June, aimed at boosting exports of Israeli gas transported by pipeline to liquefaction plants on Egypt’s Mediterranean coast, before being shipped to Europe. Egypt has long been striving to become a regional energy hub by leveraging its two liquefaction plants, its own gas fields, and gas imports from Israel.
Petroleum Minister Tarek El Molla revealed that Egypt is expected to produce approximately 7.5 million tonnes of LNG this year, which is the same amount produced in 2022 when it shipped 80% of its LNG to Europe. Despite the LNG plants operating at less than full capacity, El Molla stated that they are prepared to be expanded and could increase their capacity two or three times over.
However, Simson warned that increasing gas volumes depends on Israel, which ultimately decides the level of its exports. This statement highlights the crucial role that Israel plays in maintaining Egypt’s position as a regional energy hub and its ability to deliver high volumes of LNG to Europe.
In conclusion, the EU’s partnership with Egypt and the MoU signed last June offer exciting prospects for the country’s position as a regional energy hub and its ability to deliver a relatively high volume of LNG to Europe. While certain bottleneck issues need to be resolved, the petroleum minister’s statement about the country’s LNG plants operating at less than full capacity and the potential to expand, presents a positive outlook for the future.