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Cairo’s hub dream faces new Israeli challenge

Israel may not be able to supply Egypt with pipeline gas volumes until early 2020, which could derail Egypt's hopes of becoming a Mediterranean gas hub Israel may not be able to supply Egypt with pipeline gas volumes until early 2020, which could derail Egypt's hopes of becoming a Mediterranean gas hub.
By James Gavin 4 July 2019 Middle East & Africa / Policy & Regulation 0 34366
The Idku LNG plant in Egypt. (Shell)

The key issue: Despite settling a long-standing compensation claim from Israel, Egypt’s hopes of using its neighbour’s gas to refashion itself as a regional hub face fresh difficulties.

Interfax analysis: The compensation deal struck between Egypt and state-owned Israel Electric Corp. (IEC) in mid-June over halted gas deliveries in 2012 removed a significant obstacle to Israel exporting gas to Egypt, but there are other issues that could undercut Egypt’s ambitious dreams of transforming itself into a Mediterranean energy hub.

In 2015, the International Chamber of Commerce