Can Cyprus and Israel rescue Egypt from its gas slump?

The East Mediterranean region has ~90 tcf remaining of discovered gas but commercialising resources has proven challenging. Egypt’s acute ongoing gas shortage has no end in sight. Domestic supply is in free fall. We expect the country to turn to year-round LNG imports to meet demand. Israel’s fast-growing supply and Cyprus’ emergence as regional supplier could come to Egypt’s rescue longer-term. The Majors have a significant presence in the East Med with stakes in all large projects. There is a renewed focus on large deepwater projects in Cyprus and Israel. If successful, this would facilitate stable and positive cash flows into the 2030s and provide some much needed gas resources to Egypt.