News - Middle East: Economic analyst Salim Al-Ja'dabi has leveled sharp criticism against the natural gas import agreements between Egypt and the Israeli enemy, arguing they represent a structurally flawed arrangement that primarily bolsters the Israeli economy at Egypt's expense.

In an interview with Al-Masirah TV, Al-Ja'dabi said that, according to statements from Israeli officials including Prime Minister Benjamin Netanyahu, gas exports constitute a central deal for Israel's economy, providing direct monetary guarantees that support the shekel and reduce reliance on foreign reserves.

Citing data from the Bank of "Israel", he affirmed that of Israel's approximately $230 billion in reserves, only about $4 billion is in cash, with the remaining $226 billion valuation tied to gas agreements for resources still underground.

The core of Al-Ja'dabi's critique focuses on Egypt's role. He explained that Egypt is self-sufficient in natural gas, with annual production in some years, like 2019, reaching around 66 billion cubic meters (bcm) against domestic electricity generation needs of about 35 bcm. This significant surplus, he argued, should have been invested for national benefit rather than used to justify importing gas.

The analyst highlighted historical losses from a previous gas export deal to the Israeli enemy (pre-2012), where he emphasized Egypt sold units at $0.7-$1.5 against a production cost of $2.5 and global prices of $13-$15, resulting in annual losses he estimated at $15-$20 billion.

Regarding current agreements, Al-Ja'dabi added that Egypt is obligated to purchase gas at prices above global benchmarks—between $7.7 and $10.7 per million British thermal units (MMBtu) compared to a global range of $4.2-$5.5—a disparity he called economically unjustifiable.

He linked these deals to Egypt's economic struggles, noting the Egyptian pound's depreciation from approximately 7.5 to 47.5 against the dollar and a rise in public debt from about $60 billion to over $166 billion since the agreements were deepened, contradicting claims of economic benefit.

A key technical point raised is that the Israeli enemy lacks its own liquefaction facilities, making Egypt's Idku and Damietta plants critical for processing and re-exporting Israeli gas. Al-Ja'dabi affirmed this as making Cairo a "technical intermediary" servicing Israeli exports, despite some gas fields being in disputed or adjacent maritime zones.

He concluded that the data proves these agreements directly support the Israeli shekel while the Egyptian pound bears the cost, cementing an economic dependency that serves Israeli interests at the expense of Arab nations. This critique reflects broader geopolitical tensions and economic nationalism surrounding energy partnerships in the region.

Other analysts warn that Egypt’s new gas deal with Israel would be used as a tool of strategic and political influence in the region. However, Cairo insisted that the deal is a “purely commercial” arrangement and that there are no “political dimensions” to the deal.

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