Egypt seeks alternatives to Israeli gas amid growing diplomatic tensions

Egypt is undergoing a period of strategic readjustment in its energy policy, driven by growing diplomatic tensions with Israel. The deterioration of bilateral relations, exacerbated by the war in Gaza, has had a direct impact on gas cooperation between the two countries, which until recently was considered one of the most stable areas of collaboration.


In an attempt to reduce its dependence on Israeli gas, Cairo has begun to diversify its energy supply sources. In recent weeks, Egypt has stepped up negotiations with countries such as Russia, Qatar and Turkey to secure natural gas supplies for its power stations.


According to official sources, Egypt is in talks with Russia to establish liquefied natural gas (LNG) terminals on Egyptian territory. In addition, an unprecedented agreement has been reached with Turkey, under which Egypt will receive a Turkish ship specialised in the reception, storage and regasification of LNG, which will enable it to supply its local energy network.

Qatar has also re-emerged as a key partner. Egyptian Oil Minister Karim Badawi recently visited Doha to negotiate joint natural gas projects, marking a significant change following the suspension of Qatari gas imports in 2013. Although financial details have not been disclosed, the agreements point to long-term contracts that will ensure a stable supply in the future.


This energy reconfiguration comes at a time when gas shortages are already beginning to be felt in Egypt. Since the end of April, supplies to energy-intensive industries have been reduced by 10%, a sign reminiscent of last year's power cuts that severely impacted the industrial sector.


From a national security perspective, General Mohamed Abdel Wahid, an expert on strategic affairs, explained to Al-Arab that Cairo has felt pressure from the Israeli government to get involved in Palestinian affairs, particularly in relation to the possible displacement of people from Gaza to the Sinai. Abdel Wahid warned that these manoeuvres are crossing Egyptian ‘red lines’, especially if Israel chooses to force Palestinians across the Egyptian border.

He also mentioned that Israel is seeking to alert Washington to Egypt's rapprochement with powers such as China and Russia, especially given the presence of Chinese military aircraft in Egyptian airspace, which is affecting other areas of cooperation, particularly in the economic sphere.


On the diplomatic front, the tension has translated into concrete actions. Egypt has refused to appoint a new ambassador to Tel Aviv and has not approved the appointment of Israeli diplomat Uri Rotman as ambassador to Cairo, in protest against the Israeli military offensive in Gaza and the entry of troops into Rafah, a Palestinian city whose stability is a priority for Egyptian security. Despite this, Egyptian diplomats continue to work in Tel Aviv, although without top-level representation, according to the Israeli newspaper Yedioth Ahronoth.


For his part, economist Ali Al-Idrisi also told Al-Arab that the diplomatic crisis is already directly affecting bilateral trade and gas supplies. Although the volume of trade between the two countries does not exceed $3 billion, energy cooperation was key: Egypt imports Israeli gas, liquefies it at its facilities and re-exports it to Europe, keeping part of the supply for itself.

Israel and Egypt have maintained key cooperation on energy for years, focused mainly on the supply of natural gas. This relationship was consolidated in 2020, when Israeli gas exports to Egypt began from the Leviathan and Tamar offshore fields in the eastern Mediterranean.


The natural gas is transported from Israel to Egypt via the EMG (Eastern Mediterranean Gas pipeline), a strategic infrastructure connecting the two countries. Once on Egyptian soil, part of the gas is used to supply domestic consumption, especially in power stations, while the rest is liquefied at the Damietta and Idku plants and re-exported to Europe in the form of liquefied natural gas (LNG). This model has proved beneficial for both parties, as Israel finds a market and a gateway to the European continent in Egypt, while Egypt strengthens its energy capacity and positions itself as a regional centre for gas liquefaction and redistribution.