ENERGY-

#1- Israel’s gas exports to rise after Leviathan consortium greenlights new pipeline: Partners in Israel’s Leviathan gas field will spend USD 568 mn on a third pipeline linking the field to a production facility off Israel’s shore to boost energy exports to Europe, the companies said in a statement (pdf) Sunday. Chevron, NewMed and Ratio Energies plan to have the pipeline up and running by mid-2025 when the field’s production is expected to hit 14 bn cubic meters of gas per year.

REFRESHER- Egypt and Israel signed a landmark gas export agreement with the EU last year to ramp up exports to the bloc as it looks to phase out reliance on Russian fossil fuels. The agreement will see Israel increase gas exports here, where it will be liquefied and shipped to Europe as LNG. NewMed is considering constructing a new pipeline linking Israeli fields to our liquefaction facilities but is also looking at acquiring a floating LNG terminal, enabling it to export directly to Europe.

#2- Egypt’s dues to Capricorn up 50% in 5 months: UK-based oil and gas firm Capricorn Energy said last week that it has some USD 145 mn in outstanding receivables from Egypt — of which USD 104 mn are overdue — as of the end of May, up from USD 97 mn at the end of last year. The ongoing FX crunch is making it harder for the government to pay its dues to international companies, causing total outstanding dues to reportedly more than triple from mid-2020 to USD 3 bn in April 2023.

REMEMBER- The company is doubling down here: Capricorn plans to scale back exploration elsewhere around the world to focus on optimizing its Egyptian operations, the company said in April.

DEVELOPMENT FINANCE-

Could we be in line for more climate funding for the NWFE program? Egypt officially updated its Nationally Determined Contribution (NDC) — which sets the country’s climate and emissions targets — to increase its renewables share to 42% by 2030 instead of 2035, according to a statement published last week. The government also upgraded its emissions slashing goal from 70 mn tons to 80 mn tons by 2030. It intends to meet this target by replacing 12 gas-powered thermal power stations — with a capacity of 5 GW — with wind and solar projects worth 10 GW by the deadline, according to a separate statement. The country has signed four financial closure agreements for 3.7 GW out of the 10 GW target since November.

The move is a milestone to unlock funding for the government’s Nexus for Water, Food and Energy (NWFE) program, International Cooperation Minister Rania Al Mashat said.

ALSO- More funding on the way for our food security: The country is receiving a USD 431 mn grant from the UN’s World Food Program (WFP) to support the country’s efforts in building a more resilient, sustainable, and climate-adaptive food systems for targeted groups by 2028, WFP Country Director and Representative of Egypt Praveen Agrawal tweeted on Sunday. The grant is part of Egypt’s 2023-2028 Country Strategic Plan (pdf) which was approved during the WFP’s four-day annual executive board session in Italy last week.

TRANSPORT-

Skoda to undertake train repairs:The Egyptian Railway Authority has signed a 15-year contract with Czech rolling stock manufacturer Skoda Transportation to renovate 280 railcars, the Transport Ministry said last week. Skoda will also help to localize the supply of spare parts. The contract comes after the cabinet approved the request last month.

RETAIL-

Emirati firm to roll out UK sports fashion retailer here: British sports fashion retailer JD Sports has inked a 10-year franchise agreement with UAE-based retailer GMG that will see GMG launch some 50 branches of JD Sports across Egypt, the UAE, Saudi Arabia, and Kuwait by 2028, it said in a statement. The transaction marks the first franchise agreement for JD Sports, which sells well-known brands like Adidas, Nike, Puma, and New Balance at competitive prices.

REMEMBER- GMG last year said that it wants to open over 100 sports retail stores in Egypt by 2026.

STARTUPS-

EBRD + IFC collaborate to boost North African startups: The European Bank for Reconstruction and Development (EBRD) and the International Finance Corporation (IFC) have partnered to enhance their support for startups and accelerators in North Africa, the lenders said in a statement Thursday. The institutions are leveraging their specialized programs — the EBRD Star Venture program and the IFC Startup Catalyst — to help companies overcome early-stage challenges and make them more commercially sustainable. A pilot project will be implemented in an undisclosed North African country before expanding throughout the region. The lenders announced the initiative at an event in Cairo last week.

TOURISM-

A step towards the resumption of flights between Cairo and Tehran? A first batch of Iranian tourists will visit in the next 45 days on board a direct flight between Tehran and Cairo, Tasnim News Agency reported on Sunday, citing a press conference by the head of Iran’s tourism industry body. Subsequent trips will go via Iraq until the two countries restore diplomatic ties, paving the way for the resumption of direct flights. Officials from the Tourism Ministry are expected to visit Tehran this week, according to the report.

Egypt + Iran rapprochement: Egyptian and Iranian officials have reportedly been in talks for several months about normalizing ties and reopening embassies. Supreme Leader Ayatollah Khamenei has personally given his blessing to warmer ties with Cairo in statements that come amid a wider regional diplomatic offensive by the Islamic Republic that has seen it restore relations with Saudi Arabia and mend ties with other Gulf states.

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