Israel to Boost Natural Gas Exports to Egypt by 60% as Regional Energy Ties Deepen

Israel's Energy Ministry has announced plans to increase natural gas exports from the Tamar offshore field to Egypt by 60% beginning in 2026, marking a significant deepening of energy ties between the two countries. The expanded exports will flow through the existing East Mediterranean Gas (EMG) pipeline connecting Ashkelon to El-Arish, leveraging infrastructure that has become one of the most strategically important energy links in the eastern Mediterranean.

Tamar Field's Growing Role

The Tamar gas field, located approximately 80 kilometers off Israel's northern coast in waters about 1,700 meters deep, has been producing natural gas since 2013. Operated by Chevron (formerly Noble Energy) with partners Isramco, Mubadala Petroleum, and Tamar Petroleum, the field holds estimated reserves of approximately 300 billion cubic meters — enough to supply Israel's domestic needs for decades while supporting significant export volumes.

The 60% export increase reflects both growing Egyptian demand for natural gas and Israel's surplus production capacity. Egypt's domestic gas consumption has risen sharply due to industrial growth, population expansion, and the country's own efforts to phase out fuel oil in power generation.

Pipeline Infrastructure

The EMG pipeline, originally built to transport Egyptian gas to Israel, has operated in reverse since 2020 — carrying Israeli gas to Egypt. The 90-kilometer subsea pipeline has a nameplate capacity of approximately 7 billion cubic meters per year. Technical upgrades are being implemented to support the increased flow volumes, including compression station enhancements on the Israeli side and receiving terminal improvements in Egypt.

Additionally, some Israeli gas reaches Egypt through the Arab Gas Pipeline, which connects Israel to Jordan and onward to Egypt. This dual-route architecture provides redundancy and flexibility in managing export flows.

Economic Impact

The expanded gas exports are expected to generate significant additional revenue for Israel's economy. Gas exports already contribute billions of shekels annually to government coffers through royalties and taxes. The 60% increase from Tamar alone could add an estimated NIS 3-4 billion in additional annual revenue, funds that the government has pledged to direct toward the sovereign wealth fund and infrastructure investment.

"Every cubic meter of gas we export to Egypt strengthens Israel's economy, enhances our strategic relationship with a key neighbor, and contributes to regional energy security," said the Energy Minister. "This is diplomacy through infrastructure."

Regional Energy Hub Ambitions

The export expansion aligns with Israel's broader ambition to become a regional natural gas hub. Beyond bilateral Egypt trade, Israel is pursuing the construction of a floating LNG terminal that would enable gas exports to European and Asian markets. The East Mediterranean Gas Forum (EMGF), headquartered in Cairo and including Israel, Egypt, Jordan, Greece, Cyprus, and other members, provides the multilateral framework for coordinating regional gas trade.

Israel's total gas production has nearly tripled since 2019, reaching approximately 25 billion cubic meters annually. The Leviathan field, Israel's largest, accounts for the majority of production, while Tamar focuses increasingly on the export market. Exploration continues in other offshore blocks, with the Karish field also contributing to the growing production base.

Energy Security Considerations

Despite the export push, energy security remains paramount. Israeli regulations require that domestic gas demand is fully covered before exports are permitted, and strategic reserves must be maintained at prescribed levels. The Petroleum Council monitors these requirements continuously, ensuring that export commitments do not compromise Israel's own energy security.

The expanded Israel-Egypt gas trade represents one of the most tangible economic benefits of the peace treaty between the two countries, demonstrating that infrastructure cooperation can create mutual prosperity even in a region marked by geopolitical tensions. With the 2026 expansion now confirmed, the energy relationship between Israel and Egypt enters a new, more significant phase.