Good afternoon, friends. The week is drawing to a close, but it seems that the news cycle isn’t as ready as we are to wind down.

THE BIG STORY TODAY-

Long-stalled Nitzana pipeline to finally begin construction? Chevron and its Israeli Leviathan partners NewMed Energy and Ratio Energies have inked a USD 610 mn agreement with pipeline operator Israel Natural Gas Lines to build the long-awaited Nitzana pipeline connecting Israel and Egypt, the Times of Israel reports, citing several company officials. The 600 mn cubic feet a day (mcf/d) pipeline stretching 65 km between Israel’s southern gas network and Egypt’s gas network in eastern Sinai will bring Israel’s export capacity to Egypt to 2.2 bcf/d when construction is complete in 2028.

The project has been plagued by delays due to volume allocation and cost burden disagreements between Chevron's partners and Israel’s Natural Gas Authority, with the launch of the pipeline initially planned for this year. The delay will cap Israeli gas exports to Egypt at 1.6 bcf/d from 2H 2026, limiting Egypt's ability to secure a more affordable alternative to costly LNG shipments amid rising domestic demand and declining production.

The news follows a USD 35 bn natural gas export agreement between the two countries last month, which will see 130 bn cubic metres of gas exported to Egypt from 2026 through 2040 under an amendment to an existing 2019 gas export agreement. Flows will first increase from 4.5 bn cubic metres in 2025 to 6.5 bn cubic metres as early as 2026 under the first 20 bn cubic meter phase of the agreement.

THE BIG STORY ABROAD-

It’s another busy day in the global press, with all eyes on the region after Israeli forces once again intensified their ground offensive in Gaza City yesterday. Thousands of Palestinians are fleeing the city amid surging bombardment and relentless airstrikes, as an already alarming humanitarian crisis continues to worsen. Residents may flee through a temporary route along the central Salah El Din road “for only 48 hours,” Israeli military spokesperson Avichay Adraee said.

MEANWHILE- The Cyberspace Administration of China — the country’s internet regulator — has ordered the state’s top technology firms to cancel all purchases of all artificial intelligence chips from US tech company Nvidia in a bid to cut down on US reliance, the Financial Times reports. The news follows a ruling earlier this week which saw the East Asian state accuse Nvidia of violating the country’s anti-trust laws, following a “preliminary probe” into its business practices. The move marks the latest escalation in the trade war between China and the US despite industry negotiations in Madrid.

☀️ TOMORROW’S WEATHER- We’re in for a warm day in Cairo, with temperatures peaking at 34°C before cooling down to 22°C, according to our favorite weather app.