2022 Year in Review

Another LNG supplier to mostly Asian markets, Egypt is looking to divert 15% of
its domestic gas usage for European export. Such ambition comes at a time of
economic turmoil for Egypt. Prime Minister Mostafa Madbouly hopes to take
advantage of the high gas prices to bring in an extra $450 million a month in
foreign currency to Cairo. Such funds would be pivotal in allowing Egypt to cope
with the wheat crisis since over 80% of its wheat supply comes from Ukraine and
Russia.
Egyptian gas production has been growing since December 2017 after the
discovery of the Zohr gas field, the largest in the Mediterranean. This has
boosted Cairo as a significant exporter. In the first seven months of this year
alone, Egypt has exported 9.45 million cubic metres of LNG, up 44% from 2021’s
figures. In 2021, it provided 15% of European energy imports, most notably to
Spain, France and Belgium.
In June, Egypt and Israel signed an agreement that will oversee an increase in gas
exports to Europe. The Memorandum of Understanding notes that the trio will
work together to ensure the stable and long-term delivery of natural gas to the
EU that does not compromise decarbonisation targets. The natural gas will be
liquefied in Egypt before being shipped to Europe. Although observers have
noted that the agreement has not relieved the EU of its reliance on problematic
governments, citing both Egypt and Israel’s questionable human rights records.
Thus far, Egypt has appeared to be a ‘trustworthy supplier’ - but Egyptian citizens
are paying the price. As part of its gas export plan, Egypt has rationed domestic
energy consumption and has reintroduced the use of mazut - a polluting fuel oil
that contains sulphites and heavy metals. A reduction in street lighting and
public
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