Israel to expand gas exports to Egypt

News Desk - The Cradle 

Chevron also announced plans to increase natural gas production at Israel's offshore Tamar field in the Mediterranean Sea

Energy firms partnering to produce natural gas at Israel's Tamar field announced plans to expand production at the offshore site in the Mediterranean Sea amid an agreement to increase exports to Egypt.

Reuters reportedon 18 February that US-based oil major Chevron said the move will increase Tamar's production capacity to up to 1.6 billion cubic feet per day from 1 billion cubic feet.

This "reflects Chevron's ongoing commitment to partnering with the State of Israel to continue development of its energy resources for the benefit of domestic and regional natural gas markets," said Jeff Ewing, Managing Director of Chevron's Eastern Mediterranean Business Unit.

This second phase, Chevron said, includes reinstatement of the existing compressors at the onshore terminal in the city of Ashdod.

"Both phases of the Tamar expansion are scheduled for completion in 2025," it said.

Tamar Petroleum, another partner in the project, said in a regulatory filing the new investment is for about $24 million.

Chevron and Tamar made the announcements amid Israel's ongoing military campaign on Gaza, which has killed some 29,000 Palestinians, including 9,000 children.

The Tamar field is a significant energy source for Israel and also supplies Egypt and Jordan. It was shuttered for one month following the start of the war on Gaza on 7 October due to security concerns. Both Egypt and Jordan suffered from energy shortages as a result.

The partners of the Tamar field also announced that gas exports to Egypt are expected to increase in the coming years by an additional 4 billion cubic meters, compared to the 2 billion cubic meters Israel currently supplies.

Egypt uses the gas domestically and exports it to Europe as liquified natural gas (LNG) after processing it in Egyptian plants.

Egypt is heavily in debt and suffering from reduced revenues from commercial ships transiting the Suez Canal amid fighting between Yemeni forces and the US and UK navies.

Yemen's governing party, Ansarallah, has attacked Israeli-linked ships transiting the Red Sea and through the Suez Canal to the Mediterranean Sea. Ansarallah hopes to end Israel's military campaign on Gaza, which it views as genocide. The US and UK navies unleashed a bombing campaign on Yemen as a result.

Egypt is also under pressure from Israel to allow Palestinians into the Sinai Peninsula from Gaza. Israel wishes to forcibly expel the 2.3 million Palestinians living in the war-torn enclave to Egypt or other third countries.

Cairo has publicly refused to cooperate with Tel Aviv but recently began building a large fenced area on the Egyptian side of the border, apparently in preparation to receive large numbers of Palestinians ahead of a planned Israeli assault on the city of Rafah, which lies on the Gaza-Sinai border.