Israel seeks to export 6 billion cubic meters annually from the Tamar field to Egypt (European)
Tamar field partners announced an investment in expanding production capacity to provide more gas to Egypt. This measure will have an impact on strengthening Tel Aviv’s relationship with Cairo, according to Calcalist, a website specializing in the Israeli economy.
This comes amid rising regional tension, as the Israeli army has been waging a devastating war against the Gaza Strip since last October, which ignited tension on other fronts such as southern Lebanon and the Red Sea.
A report by writer Adiel Eitan Muski says that this measure will provide investors with positive prospects, but it may harm energy security and the gas surplus that will remain in Israel, and it will also harm competition within the local market.
He adds that various announcements by partners in the Tamar natural gas field were issued in recent days showing that despite the war, gas exports to Egypt will witness a rise in the coming years.
According to the writer, this measure carries great potential for Israel’s foreign policy and also for the local stock market, but it revives the discussion about the surplus of natural gas that will remain in Israel and the potential harm of competition between gas fields for the local market, and it is also a first step towards a series of decisions expected for the future of the Israeli energy sector. Expected to be taken soon.
The writer mentions that the partners in the Tamar field announced a few days ago an investment worth $24 million to increase production, and this announcement joins another announcement from the partners indicating that as of July 2025, exports to Egypt will increase by about 4 billion additional cubic metres, compared to about 2 billion. Cubic meters only.
This announcement also joins another announcement issued during December 2022 regarding the extension of a 150-kilometre-long transportation pipeline from the Tamar field to the Tamar platform next to the shores of Ashkelon. The cost of laying this pipeline is approximately $673 million.
The new expansion, which was adopted after approval from the Ministry of Energy, will allow the production capacity of Tamar to increase to about 16 billion cubic meters annually, according to the writer.
The writer stated that if the announcement is implemented, the Tamar field will export gas to Egypt at an amount of about 6 billion cubic meters annually, which is slightly less than half the amount of natural gas that Israel consumed in 2023.
The writer reported that Tamar is not the only field exported to Egypt. In 2022, the Levitan field exported 4.95 billion cubic meters to Egypt and 2.73 to Jordan, while the Tamar field exported 1.57 billion cubic meters, and the vast majority of exports from Tamar were intended for Egypt.
The writer points out that exports to both countries have important effects on political relations with the two countries, as gas production from the Tamar field was halted due to the platform’s proximity to the Gaza Strip.
The writer adds that in order to provide natural gas to the Israeli local market - in light of the war - gas exports to Egypt were reduced by about 80%.
Following the beginning of the war in Gaza, gas exports to Egypt were reduced by about 80% to provide it to the local market in Israel (Reuters)
The writer quotes Dr. Amit Mor, CEO of Eco Energy for strategic economic consulting and a lecturer at Reichmann University, as saying, “The Egyptian market is suffering from a shortage of natural gas, which has led to intentional power outages across the country and a reduction in liquefied natural gas exports from Israel.”
He added, "Israeli exports to Egypt contribute not only to providing electricity to the country, but also to its revenues, in light of the economic crisis it is going through."
The writer explained that part of the natural gas sold to Egypt went to gas liquefaction facilities, and from there it was sold to Europe, which helps the country deal with the economic crisis by introducing foreign currency. In 2022, natural gas exports from Egypt to the country achieved about 8.4 billion dollars.
Moore believes that Jordan also has a high dependence on Israeli gas, and says, “In Jordan, about 70% of electricity is produced from natural gas imported from Leviathan, which means Jordan’s heavy dependence on the Israeli energy market.”
Gilad Ben Tzibi, an Israeli energy analyst, says, “The Egyptian market buys gas at prices higher than the local market and in any quantity that Israel can provide, and this matter continued even during the war.”
But the writer points out, on the other hand, that the energy market is concerned that expanding export permits may lead to a shortage inside Israel in the coming years, or at least an increase in prices due to the decline in the intensity of competition in the local market.
The head of the Finance Ministry's Budgets Department, Yogav Gardos, warned last year that increasing exports "could jeopardize Israel's energy security."
The writer pointed out that there is another problem that enables the expansion of export permits also from the Leviathan field, which is being discussed these days, and which raises the question not only of how much gas is prepared for export, but also how the gas will be sold.
Among the options that were evaluated - according to the author - is the possibility of establishing a gas liquefaction facility at sea, instead of expanding pipelines towards neighboring countries.
According to the author, this option allows the use of ships and reduces dependence on only two countries, “Egypt and Jordan,” but the high cost stands as an obstacle to its approval.
Source: Israeli press