How Egypt went from an LNG exporter to importer

For years, Egypt reaped major benefits from natural gas discoveries in the Eastern Mediterranean, becoming a key regional energy hub alongside Israel and Cyprus. The 2015 discovery of the Zohr field — the largest gas deposit in the region — allowed Egypt to meet its domestic energy needs and export liquefied natural gas (LNG) abroad. But those gains have reversed sharply.

Output at the Zohr field has fallen steeply, dropping from over 6 billion cubic feet per day at its peak to around 3 billion today, Reuters reports.  Meanwhile, domestic demand for gas has soared, driven by rapid population growth and rising temperatures linked to climate change.

To cover the shortfall, Egypt began importing gas, including from Israel, whose own production boom helped offset Egypt’s declining supply. However, recent regional conflict disrupted those flows when Israel paused exports during clashes with Iran, exposing Egypt’s heavy dependence on foreign gas. The supply gap forced Egypt to resume costly LNG imports and shift power plants to fuel oil and diesel to prevent blackouts.

Although Israel resumed exports in June, Egypt continues to struggle with economic headwinds. Energy majors continue to explore new fields, but hopes that the Eastern Mediterranean will become a major gas exporting hub are fading amid regional instability and falling output.