Thanks to its geographical location near different markets, Egypt positions itself at the center of a new energy market and a regional natural gas trading hub. With the recent energy turbulence, Egypt has had the chance to realize its aspiration and tap into new markets, empowered by its strong natural gas infrastructure.

Egypt Consolidating its Position as Gas Hub

Egypt has been consolidating its position as a regional hub through various efforts to achieve this goal, and through using its two liquefaction plants to re-export liquified natural gas (LNG) to Europe. The country has signed a number of agreements and memoranda of understandings (MoUs) in this regard. In June 2022, Egypt signed a framework agreement with the European Union (EU) and Israel to export natural gas from Israel to Europe via Egypt’s liquefaction plants, which reflects Egypt’s significant role connecting the region.

Furthermore, June 2022 witnessed the signing of a tripartite agreement with Lebanon and Syria to export around 650 million cubic meters per year (mmcm/y) of natural gas from Egypt to Lebanon through Syria via pipelines. Later on, in October 2022, the Ministry of Petroleum and Mineral Resources (MoP) announced a framework agreement for developing the Gaza Marine gas field offshore Gaza, according to which the Egyptian Natural Gas Holding Company (EGAS) is set to take over the field’s development.

Moreover, Egypt is working on boosting its natural gas production and rationalizing consumption to supply gas exports to countries affected by the shortage caused by the Russian invasion of Ukraine. President Abdel Fattah El-Sisi gave his directives to accelerate oil and gas exploration to gain the highest economic exploitation of the country’s resources and to maximize natural gas added reserves to cover both local demands and exports.

EMGF Role

In 2018, Egypt had taken the initiative to bring together the many countries in the East Mediterranean to work together through establishing the East Mediterranean Gas Forum (EMGF) in order to unlock the region’s gas potential. The EMGF came as Egypt “saw that – although there are several challenges ahead of monetizing these resources – through cooperation, these resources can be optimized and monetized for the benefit of the people,” Osama Mobarez, Acting Secretary General of the EMGF, previously announced.

In June 2022, President Abdel Fattah El-Sisi said that the EMGF can play a pivotal role in resolving the global energy crisis.

This comes as the forum plays an important part in securing energy supplies via active regional cooperation, especially with the looming geopolitical challenges. Moreover, the EMGF contributes to ensuring energy security and increasing exports to Europe.

Egypt Leads African Energy Transition

Egypt does not only play a role in the East Mediterranean region, but it speaks for the African continent as well. In EGYPS 2022, Egypt gave a platform for Africa to talk about its readiness for energy transition. It was showed that shifting to new and renewable energy is not feasible to many African countries at the time being, but it is convenient to use natural gas as an alternative fossil fuel that is more environmentally friendly.

Moreover, Egypt launched an initiative to support African countries in having access to clean energy. The initiative was launched under the leadership of the COP27 presidency of the Arab Republic of Egypt. “The Africa Just and Affordable Energy Transition Initiative (AJAETI) initiative aims to provide all Africans with access to clean energy, whilst meeting the energy requirements for Africa’s economic development,” COP27 president Sameh Shoukry said.

The AJAETI initiative aims to grant access to affordable energy to at least 300 million people in Africa by 2027, which will contribute to the sustainable development goal (SDG 7.1) that aims to secure universal energy access by 2030, according to COP27 Africa Just and Affordable Energy Transition Initiative (AJAETI) Brochure.

Through these efforts exerted by Egypt to support natural gas in the region and to secure energy supply, Egypt strengthened its role as a regional energy hub. Not only in the East Mediterranean region, but also in Africa, and in supporting Europe in energy security.