Egypt is examining whether the interruption of gas production at an Israeli field following the Hamas attack would ambush its strategies to resume LNG exports to Europe as prepared, confidential authorities have actually informed Bloomberg
Egypt, which intends to end up being a local gas center, has actually been exporting LNG to Europe from its terminals on the Mediterranean with gas from domestic production and from fields offshore Israel.
Nevertheless, Egypt did not export any LNG in June, August, and September, due to high domestic power need in the summertime.
Recently, Egypt’s Minister of Petroleum Tarek El Molla informed Reuters that the North African nation prepared to resume LNG exports in October, without any amounts yet specified.
However this weekend’s attack by Hamas on Israel might thwart Egypt’s LNG export strategies.
Following the attack, Chevron, the operator of the Tamar gas field offshore southern Israel, closed down production at the field per directions from the Israeli energy ministry.
” Chevron Mediterranean Limited was advised by Israel’s Ministry of Energy to shut in production at the Tamar Production Platform,” the regional system of the U.S. supermajor stated in a declaration brought by Reuters
While Tamar was purchased shut, another field offshore Israel, the huge Leviathan field, continues to run usually, Chevron stated on Monday.
After the shutdown of the Tamar field, Israel will look for alternative sources to fulfill its energy requires, the Israeli energy ministry stated
Israel informed Egypt about the short-term stop of production at Tamar on Saturday. Since early Tuesday, the Israeli federal government had actually not notified Egypt of any strategies to suspend gas production at the huge Leviathan field, among the Egyptian authorities informed Bloomberg.
After the shutdown of the Tamar field and amidst worries of lower gas supply to the Mediterranean nations, Europe’s benchmark gas futures soared by 15% on Monday and continued to rally by 4% early on Tuesday Amsterdam time.
By Tsvetana Paraskova for Oilprice.com
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