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Israeli gas exports to Egypt grow despite tensions over Gaza war

TO GO WITH AFP STORY BY PATRICK MOSER An Israeli employee works at Zion Oil and Gas company's oil-drilling platform in Isarel's onshore rig in Maanit, about 50 kms north of Tel Aviv, on July 29, 2009. Texan John Brown, who founded the company, says he is on a divine mission to find oil in the land of milk and honey. He is not the only one who has faith that there is oil under the Holy Land. Brown points out that his Zion Oil and Gas company, which is listed on the New York Stock Exchange, recently raised 21
To:

Al-Monitor Readers

From:

David Rosenberg

Israeli reporter specializing in business, economics and politics

Date:

April 17, 2024

Bottom Line:

The Gaza war has severely strained Israeli-Egyptian relations, but that has not prevented Israeli exports of natural gas from continuing to grow. Egypt needs the gas to ensure domestic supplies and to earn hard currency from re-exports to Europe, while both countries have an interest in continuing the development of an Eastern Mediterranean gas hub. Exports are set to keep growing as energy companies in Israel expand production and transmission capacity. Since Israel’s April 1 attack on the Iranian consulate in Damascus and Iran's subsequent retaliation over the past weekend with missile and drone attacks on Israeli territory, the risk of a wider war that could severely disrupt Israeli supplies has grown. However, barring a major conflagration, the gas trade is likely to continue to expand out of economic necessity on Egypt’s part and out of Israeli geopolitical interests.