By Hossam El-Morsi:
Economist Dr. Mohamed Fouad stated that Egypt has the capacity to operate without Israeli natural gas, emphasizing that the financial impact of such a shift would not pose an existential crisis.
Speaking with media personality Amr Adeeb on the show “Al-Hekaya” via MBC Egypt, Fouad clarified that even if Israel were to suspend its gas supply agreement, it would not amount to a decisive economic battle. Israeli gas constitutes only about 10 percent of Egypt’s total natural gas sources, limiting its strategic weight.
He stressed that Israeli Prime Minister Benjamin Netanyahu does not have unilateral authority to cancel the gas deal, as it is a commercial contract between private firms, not a governmental treaty. The U.S.-based Chevron Corporation, which owns 40 percent of Israel’s Leviathan gas field, holds the actual decision-making power regarding supply volumes, extensions, or suspensions to Egypt.
Fouad added that any abrupt termination by Israel could trigger legal complications with American stakeholders and might obligate Israel to pay substantial compensation.
According to the expert, Egypt could secure alternative gas supplies at an estimated annual cost of no more than $3 billion. The country’s existing infrastructure, including floating regasification units, is equipped to handle disruptions by converting liquefied natural gas (LNG) into usable natural gas, ensuring uninterrupted energy delivery.
— news from Masrawy
— News Original —
Can Egypt Do Without Israeli Gas?.. Economic Expert Explains
By Hossam El-Morsi:
Economist Dr. Mohamed Fouad confirmed that Egypt can do without Israeli gas, noting that the cost would not constitute an existential crisis.
During his conversation with media personality Amr Adeeb on the program “Al-Hekaya” via MBC Egypt, Fouad explained that any Israeli threat to freeze the gas agreement does not amount to a “battle of annihilation,” as Israeli gas represents only 10% of Egypt’s total gas sources.
Fouad emphasized that Israeli Prime Minister Benjamin Netanyahu does not have the authority to cancel the gas agreement, as it is a deal between private companies, not a government-level agreement.
He added that Chevron, the American company owning 40% of the Israeli Leviathan gas field, holds the right to decide on supplying, extending, or increasing quantities delivered to Egypt.
He continued: Any cancellation would involve complications with the American side and would require Israel to pay hefty compensation.
The economic expert noted that Egypt could compensate for the agreed quantities at a cost not exceeding $3 billion annually from alternative sources.
He affirmed that Egypt’s infrastructure can handle any disruption, as it can use regasification vessels to convert liquefied gas into natural gas, ensuring continued energy supply under normal conditions.