Egypt, Jordan Face High Supply Risks as Israel’s Gas Exports Remain Suspended

Egypt’s cabinet said on October 29 that imports of 22.6 million standard cubic meters per day (mcm/d) of Israeli gas had completely stopped, exacerbating power cuts throughout the country. Amid the ongoing suspension of gas production from Israel’s Tamar gas field since October 9, we believe that Israel has decided to direct gas production from its export-oriented and largest offshore gas field, Leviathan, to the local market instead of exporting it to Jordan and Egypt. Such a decision could lead to a potential dispute in the future between Israel and its neighboring customers if gas flows remain suspended for a long time and cause an energy crisis.

Israel Halts Gas Exports from Leviathan  

One-third of Leviathan’s production is sent to the domestic market, while the remaining two-thirds is allocated for exports to regional consumers in Jordan and Egypt. In 2022, the field’s gas output reached 11.4 billion cubic meters (bcm) , of which 3.8 bcm was sent to the domestic market, 4.9 bcm exported to Egypt, and 2.7 bcm exported to Jordan ( Figure 1).