Egypt Locks In Gas-Import Dependency With New Israel Deal

Egypt will boost its contracted purchases of natural gas from Israel’s Leviathan field under a new agreement starting next year, deepening the country’s dependence on imports of the fuel for the long haul.

The deal reflects Egypt’s desperate need for gas due to surging domestic demand and declining output from its own fields. While the multiyear contract offers lower prices than those available on the short-term global market, it calls into question the North African country’s aspiration to return to being an exporter of the fuel.