Pause on Israeli gas-field threatens Egypt’s LNG export to Europe

Safety concerns have led to a 20% decrease in Israel's gas shipments to Egypt, prompting the shutdown of a vital offshore field and potentially jeopardizing gas deliveries to Europe. 

The decision to shut down the Tamar gas field, operated by Chevron Corp., was made by Israel due to safety concerns amid escalating conflict between its military forces and Hamas, Bloomberg reported. Notably, Israel has not communicated any halt in production from the larger Leviathan gas field to Egypt, according to one of the officials.

The Tamar field in the Mediterranean Sea has been halted, resulting in a reduction of Egypt's daily imports of Israeli gas to approximately 650 million cubic feet, as reported by anonymous officials who are not authorized to speak publicly on the matter. Egypt is now evaluating the impact of this development on its plans for liquefied natural gas (LNG) exports, following a recent shipment to Europe.

The repercussions of this disruption in gas supply have had ripple effects in Europe, where benchmark natural gas prices have surged by approximately 20% in the last two days. Additionally, ship-tracking data indicates that one LNG vessel may have postponed its arrival at Egypt's Idku plant, while another departed for Europe shortly before the Hamas attack.