EU inks tripartite gas deal with Egypt and Israel

The European Union (EU), has inked a tripartite Memorandum of Understanding (MoU) with Egypt and Israel for the trade, transportation and export of natural gas to Europe.

The deal aims to reduce its dependence on Russian gas. The three-year agreement was signed in Egypt’s capital city, Cairo and targets reliable supply of natural gas from Egypt and Israel to EU-member countries via Egypt’s liquefied natural gas terminal.

The MoU is also expected to result in a commitment by the three parties over towards a green transition. It will expedite the phased development of new gas liquefaction plants, plans to reduce methane emissions and implement the use of carbon capture technology to reduce emissions while decarbonizing the natural gas sector.

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Exploration of natural gas

“We reaffirm our joint commitment and determination to accelerate the just energy transition and develop a resource-efficient, socially just and low emissions and climate neutral economy,” stated European Commission President, Ursula von der Leyen, during a joint conference with the Arab Republic of Egypt’s President H.E. Abdel Fattah El-Sisi.

The agreement will also see both Egypt and Israel increase the production and exploration of natural gas, encouraging European companies to participate in exploration tenders launched by Egypt and Israel, respectively. With the EU having imported approximately 40% of its natural gas from Russia in 2021, the bloc has set a target of becoming fully independent of Russian fossil fuels before 2030.

Israel’s Minister of Energy, H.E. Karine Elharrar, acknowledged the move as progressive one in which Israel will be afforded the opportunity to become a top player in the global energy market. The State of Israel aims to double gas production capacity by up to 40 billion cubic meters a year.