Egypt led by President Abdel Fattah el-Sissi plans to significantly increase gas production to meet growing domestic needs and mainly to increase exports. In addition to its own huge offshore gas fields, Egypt also imports significant amounts of gas from Israel.
One of the projects on the agenda is a tripartite move of supplying Israeli and Egyptian gas to Saudi Arabia. The Saudis are an energy powerhouse, but mainly of oil. However, in order to realize the vision of Crown Prince Mohammed bin Salman, which includes the establishment of the innovative city of Neom and tourism projects along the Red Sea coast and the Gulf of Eilat, the Saudis need a large-scale supply of electricity.
"Globes" has learned that Egypt will build a gas pipeline that will cross the Gulf of Eilat to Saudi Arabia, and the gas that will be sold to the Saudis will also be from Israeli sources. Although the move is still in its infancy, like the story "Globes" revealed last week about the plan to allow Israelis to vacation on the Saudi-controlled islands of Tiran and Sanafir, the new initiative also demonstrates the warming of economic relations between the two countries.
Published by Globes, Israel business news - en.globes.co.il - on January 30, 2023.
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