Egypt’s Ramp Up in LNG Exports Remains Slow

Egypt so far this month exported just two LNG cargoes, ship-tracking data showed, supporting concerns that the restart of Egyptian LNG flows might be hampered by lower gas pipeline supplies from Israel due to due closure of the 10bcm/yr Tamar gas field and the EMG gas pipeline.

• “The impact of the current situation on the domestic, regional and international gas balance will ultimately depend on its duration,” researchers at the Bruegel think tank said.
• “In a very tight global LNG market, the prospect of losing the relatively small Egyptian supplies at the beginning of winter has created upward pressure on gas prices across Europe and Asia,” Bruegel said.
• Latest ship-tracking data suggested that the Seapeak Catalunya was scheduled to load LNG at Egypt’s Idku plant, however, the vessel either did not load or only picked up limited volumes and is now heading to Algeria.
• BNEF data suggested Egypt exported two LNG cargoes last week and one cargo the week prior.
• “Although Israel has surplus gas production, which currently supports Egypt and Jordan’s growing demand, a continued or escalated conflict would have wide-ranging implications,” Rystad Energy AS said in a note. The war “poses a serious threat to the regional natural gas market and could have knock-on effects on Europe’s liquefied natural gas supply as winter approaches”, Rystad said.
• Egypt’s Energy Minister said early October that LNG exports are planned to resume this month, after increased domestic demand led to a halt of almost all exports throughout the summer.