Israel’s Gas Shipments to Egypt Drop 20% as Tamar Field Shutdown Sparks Concerns for European Deliveries

Israel’s gas shipments to Egypt have plunged by 20% due to safety concerns leading to the temporary shutdown of the crucial Tamar offshore gas field.

This unforeseen disruption has cast a shadow of uncertainty over the continuation of gas deliveries to Europe, resulting in a spike in benchmark natural gas prices in Europe and potential repercussions on Egypt’s liquefied natural gas (LNG) export plans.

The Tamar field, situated in the Mediterranean Sea and operated by Chevron Corp., was halted as Israel grappled with escalating conflicts between its military forces and Hamas, citing safety concerns.

While the Israeli government has not yet indicated any disruption to the larger Leviathan gas field, the impact on Egypt’s energy supply chain remains significant.

Tamar and Leviathan, Israel’s largest gas discoveries in the past two decades, have been instrumental in meeting domestic energy needs and facilitating exports to neighboring nations, including Jordan and Egypt.

The shutdown of the Tamar field, which accounted for nearly half of Israel’s gas production last year, could jeopardize Israel’s aspiration to become a major regional gas supplier.

The situation has prompted concerns about the duration of the outage and its potential impact on Egypt’s LNG exports to Europe, especially as European nations seek alternatives to Russian pipeline flows.

As gas prices surge, the region watches anxiously for developments that may reshape the dynamics of energy supply in the Mediterranean.