How long will Egypt's gas crunch last this time?
Egypt is experiencing an earlier than predicted gas deficit. Production at the key Zohr field has fallen due to water breakthrough. With some onshore producers focusing on oil and limited new development opportunities following disappointing recent deepwater exploration, the country’s gas supply outlook is challenged. To compensate for declining production, Egypt has imported record volumes from Israel in 2023, becoming a net importer again. Egypt has several ways to balance the market, including reducing demand and importing LNG. We expect the supply outlook to brighten towards the end of the decade with increasing imports of regional piped gas aiding supply. And increased exploration led by the Majors could yet alter dynamics.