Diverse East Mediterranean outlook

Egypt will enjoy a gas boom, while Cyprus and Israel struggle to find export markets

During 2017, Egypt adopted an energy sector reform programme, including the liberalisation of the gas industry, and subsidy reductions. These reforms have already benefited the energy sector. Gas production increased, with the giant Zohr gasfield (reserves of 0.85 trillion cubic metres) due on stream in December, helping reduce liquefied natural gas imports by 30%. The first phase of Zohr will be completed during the first half of 2018, adding over 10bn cm a year to the Egyptian gas grid, rising to about 28bn cm/y by 2019. With smaller gasfields also being developed over the same period, Egypt expects to become self-sufficient in gas by the end of 2018, allowing it to phase out LNG imports a