Exports of Israeli natural gas to Egypt and Jordan dropped sharply in March and April compared with February, and may not return to pre-coronavirus levels, Israel Natural Gas Lines Ltd. warned in its first-quarter report over the weekend.
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Natural gas consumption by the local market dropped as well during the two months, but it is expected to return to pre-pandemic levels once the crisis is over, the government-owned pipeline company said. “In regard to export pipelines, the company cannot at this stage assess whether the quantities used will return to the levels seen before the outbreak of the crisis,” it said.
Despite the downturn in March and April, revenues for the pipeline company reported a 37% increase in revenues year on year in the quarter, mainly because exports to Jordan and Egypt began at the end of last year.
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Looking at market conditions, chairman Eitan Padan said, “We are contending with changing market conditions, among them significant changes in world natural gas prices, not to mention other major challenges.”
Prices have plummeted over the last few months due to oversupply and more recently the coronavirus.