The agreement between private companies to import natural gas from Israel will be subject to the Egyptian regulations governing natural gas imports, said Hamdy Abdel Aziz, Spokesman of the Ministry of Petroleum and Mineral Resources, adding that the private sector companies’ in the deal have to submit their requests for consideration in accordance with the relevant regulations, Egypt Oil & Gas reports.

Egypt is currently implementing its plans to achieve natural gas self-sufficiency and have surplus in 2019. The country is adopting a strategy to become a regional energy hub, which will involve Egypt importing natural gas from several countries in the East-Mediterranean Sea, including Israel and Cyprus, Abdel Aziz pointed out, adding that receiving Israeli natural gas is part of the solutions to reach an agreement on arbitration issues between companies.

Egypt has the infrastructure of pipelines and liquefaction plants to be a corridor for energy and natural gas. This infrastructure can be expanded by adding new liquefaction stations, either in Edco or Damietta, he highlighted.

The new gas market regulating law allows companies to purchase natural gas, import and resell it in the local market or re-export it through the liquefaction stations in accordance with the law and its executive regulations. This approach will add value to the Egyptian economy by benefiting from the gas supplied in many industries during re-export, Abdel Aziz added.