Egypt Watch

An Israeli project threatens the revenues of Suez Canal in Egypt

General Osama Rabie, chairman of the Suez Canal Authority, said that the Israeli project of Eilat-Ashkelon line for easing oil exporting to Europe will impact the Suez Canal.

The Eilat-Ashkelon pipeline is an Israeli project to connect Eilat port on the Red Sea with Ashkelon port on the Mediterranean Sea by pipelines, highway and railway. It is expected to be finished within five years aiming at providing a low cost alternative to Suez Canal for transferring Gas and Oil to all ports all over the world. Rabie added that there is now no projects competing Suez Canal, but such projects are expected to be found in the near future. He explained that the Israeli line impact on the Suez Canal is estimated at reducing the passing oil tankers by 16%.

The project evokes the experts’ warnings to the Egyptian government before the widening of the Suez Canal in 2015. The project named “The New Suez Canal” cost USD 8bn, with a great support from Abdel Fattah al-Sisi. Experts then said that such widening will not be useful because the pre-widening capacity of the canal was sufficient to the expected activities through it.