Egypt is about to start exporting LNG again as supplies from Israel have increased.
According to Bloomberg ship-tracking data, the Adam LNG ship has arrived at the North African nation’s Idku facility.
The development marks Egypt’s return to international LNG exports after a months-long gap, sources told the publication. Resumption is expected to increase gas supplies to Europe and support LNG prices on the continent.
Before the summer break, Egypt had stated that exports will resume in October due to a surge in domestic demand. However, last month’s export plans were shelved, and only modest amounts of LNG were shipped from Idku’s storage tanks in the wake of Hamas’ attacks on Israel in early October.
Following the attack by the Palestinian militant group, Israel halted production at its Tamar gas field, one of the country’s largest offshore gas fields. As per the sources aware of the developments, Israeli gas flows have now reached their pre-war levels, and some gas has been made available for export due to decreased demand in Egypt caused by the modest drop in temperature.
Last year, the majority of Egypt’s LNG was shipped to Europe. With full storage facilities across the continent, prices have remained stable as winter approaches. Nevertheless, as Russia cuts supply in the wake of the war in Ukraine, Europe will depend on LNG to get through the coldest months.
Egypt is calculating the potential amount of LNG it can export to Europe this winter, the sources said.
Israel had also committed to increasing its exports to Egypt from the Mediterranean Tamar field before the war began.
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