With temperatures soaring and electricity demand on the rise, Egypt's natural gas imports have come to an abrupt stop, as announced by the cabinet on Sunday. This stoppage, attributed to the impact of the ongoing Gaza conflict, raises concerns about Egypt's ability to resume its exports to Europe.

The cabinet, in an explanation of the prolonged power cuts that have troubled the nation for months, highlighted the complete drop in natural gas imports from 800mcf/d to zero. Chevron Corp., the operator of the gas field affected by Israel's shutdown, refrained from immediate comment, reiterating its commitment to honor certain contracts with Egypt.

The suspension of imports has sparked attention from European gas traders, as Egypt's import of gas from Israel is crucial for its subsequent export to Europe as LNG. Eni, the Italian oil giant, expressed optimism last week about Egypt restarting gas exports, foreseeing a decline in domestic demand.

In addition to the halted gas imports, Egypt has been grappling with persistent power cuts since the middle of the year. These cuts have been attributed to not only the soaring temperatures but also cost-saving measures amid the country's severe foreign currency crisis, the worst seen in decades. The government also pointed to the decline in electricity from renewable energy sources as another contributing factor.

Despite efforts to limit the cuts to around an hour a day, they have further compounded the challenges faced by Egyptians, who are already reeling from record inflation linked to multiple currency devaluations since early 2022.