Al Monitor: Egypt turns to Israel to address shortage of natural gas

Egypt is plunging into darkness every day. Across the country, authorities are scheduling power outages to take the pressure off the national grid as Egypt struggles to deal with chronic energy shortages.

According to Hafez El Salmawy, managing director of the Egyptian Electric Regulatory Agency, Egypt will lack at least 20% of the natural gas it needs to properly power its electricity plants this summer. As energy usage spikes in the heat, these outages will become longer and more frequent.

The new president, widely expected to be popular army chief Abdel Fattah al-Sisi, will take office as the worst months kick in. His toughest challenge will be dealing with disgruntled citizens as they struggle through blackouts and fuel shortages; these same problems contributed to the downfall of President Mohammed Morsi, the very man Sisi overthrew last July.

In desperation, the state-owned Egyptian Natural Gas Holding Company (EGAS) is turning to Israel, a former export destination of Egyptian gas. Egypt lost an estimated $10 billion selling underpriced natural gas to Israel, Jordan and Spain between 2005 and 2011, according to a new report by the Egyptian Initiative for Personal Rights. The sales to Israel alone cost the country over $1 billion, estimated Mika Minio-Paluello, an energy researcher and one of the report’s authors. MORE

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