Israel is gradually resuming natural gas exports to Egypt from its Leviathan field at a reduced volume of less than 200 mn cubic feet per day (mcf/d) — down from the 800 mcf/d of flows recorded in the week before Tel Aviv shuttered its offshore fields earlier in the month — a government source told EnterpriseAM. Supply is expected to hit 850 mcf/d in July and August — down from the 1 bcf/d that would have been supplied at full capacity for this period — before returning to normal levels later in the year.

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REMEMBER- Israel once again halted Egypt-bound natural gas exports last Sunday as the US launched strikes on Iranian nuclear sites. Israel had only just partially resumed gas exports the Thursday before, after a six-day pause in exports that began when the war started between Israel and Iran.

What does this mean for factories? The government has restarted gas supplies to Mopco, Abu Qir Fertilizers, and a host of factories late last week, industry sources told EnterpriseAM. The government is also reportedly weighing an increase in domestic gas prices for industries to offset the mounting cost of importing LNG from international markets, Al Arabiya reports, citing unnamed sources.

ICYMI- Authorities had temporarily reduced gas supplies to several energy-intensive sectors — including iron, fertilizers, petrochemicals, and aluminum — to prioritize power generation. The move pushed local fertilizer companies to suspend operations.

The halt to supplies led unsubsidized fertilizer prices to jump some 40% last week, AlArabyia reports. The reduction in gas supplies also led to reduced production of subsidized fertilizers, unnamed sources told the outlet.

IN OTHER ENERGY NEWS-

#1- Eni and its state partners have brought online an additional 60 mn cubic feet per day (mcf/d) in the Zohr field through the drilling of a new well, according to a statement from the Oil Ministry. Flows from the Zohr 6 well will be followed a further 55 mcf/d from the Zohr 13 well following drilling, according to the statement

#2- Egyptian Natural Gas Holding Company awarded six new exploration blocks spread across the Mediterranean and onshore blocks in the Delta and North Sinai, according to an Oil Ministry statement. Chevron, Shell, Eni, Cheiron, IPR, and Perenco are expected to invest USD 245 mn in the blocks and develop at least 13 exploratory wells.

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