The continued conflict in Gaza is not only putting pressure on Egypt’s border security, it is also having a significant impact on Cairo’s ability to keep the lights on at home. Imports of Israeli gas have fluctuated since Hamas’ 7 October assault on Israel which resulted in the shutdown of the 13tcf Tamar gas field and the subsequent halting of flows via the EMG offshore pipeline to Egypt (MEES, 13 October).
With Cairo’s own gas output in decline (MEES, 10 November & MEES, 3 November) and consumption falling by less than expected amid un-seasonably hot temperatures, these fluctuating volumes have played havoc with the country’s gas balance. Fertilizers producer OCI, in its 7 November earnings call, references “recent curtailments in Egypt reflecting the latest geopolitical events.” “We lost a couple of thousand tons of ammonia [output] since 7 October,” CEO Ahmed el-Hoshy says. (CONTINUED - 754 WORDS)
