East Med Has Chance to Fulfill Gas Potential

The EU’s ambition to reduce its Russian gas imports by two-thirds by year's end has already seen it reach out to a raft of global gas suppliers. On its doorstep sits the East Mediterranean gas play, which has yet to fulfill its own lofty ambition of supplying LNG to global markets. The stars appear aligned for East Med gas to fulfill its potential with Europe in need of alternative supply, but key questions remain on how much gas could be sent and how it could be exported. Egypt sits at the center of this emerging gas hub with its twin liquefaction plants at Idku and Damietta. Geopolitical cooperation is building via the East Mediterranean Gas Forum backed by the EU and the US. On Apr. 13, Eni and Egas signed a framework agreement to “maximize gas production and LNG exports ... to promote Egyptian gas export to Europe, and specifically to Italy in the context of the transition to a low-carbon economy.” Egyptian LNG exports to Europe have ramped up since last December as prices have soared and have outpaced exports to Asia. Egypt’s twin terminals shipped about 80%, or 600,000 tons, of their LNG output to Europe last month.