Egypt Seeks Saudi Defense Mandate After Damietta Gas Ship Strike

By Olivia Hart

A late-July drone strike at Damietta removed 10% of Egypt's liquefied natural gas (LNG) import capacity as Egypt prepares a defense vote for Saudi Arabia.

The drone hit the Energos Winter regasification vessel, a ship that converts LNG into pipeline gas. It also set a second LNG carrier on fire. Egypt's domestic gas production has fallen for years. The country has returned to LNG imports. The report assessed that the gas system cannot sustain a major disruption.

Takeaway: Damietta's July losses leave limited room for another import shock.

What does the October 26 defense vote change?

President Sisi has asked Parliament to authorize him "to answer any Saudi request for defense help," according to the report. The vote is set for October 26. Pro-Sisi parties are likely to meet the two-thirds approval threshold, the report said.

Cairo has not said how many troops it would send or what they would do. It has noted that the deployment would not enter Yemen. The request would expose Egypt directly to Houthi retaliation or an Iranian response through the Houthis, the report said, despite an apparent backchannel with Iran.

Takeaway: The requested authorization would create a defense channel while excluding Yemen from its stated scope.

Why does Egypt need Saudi money and Red Sea access?

A $5.3 billion Saudi deposit at Egypt's central bank falls due this month. The report said Egypt cannot afford the Saudi money that supports its economy or the Red Sea shipping that helps pay for gas imports. Houthi attacks have cost the Suez Canal dearly, although the waterway has recovered since the U.S.-Iran war began.

The report described the supply sequence. Israel cut gas exports to Egypt when the war began, forcing replacement LNG purchases as attacks on Qatar and near-closure of Hormuz sent global prices soaring.

• Egypt's monthly energy-import bill doubled to $2.5 billion in March.
• The IMF estimated about $3.5 billion in additional costs between March and June.
• Foreign investors fled to safety and withdrew $17 billion from Egyptian Treasury debt over seven weeks.
• The withdrawals knocked as much as 17% off the pound and pushed inflation above 15%.
• The report said oil was above $100 per barrel, after which Cairo raised fuel prices by up to 30%.
• Cairo also ordered shops to close at 9 p.m. to save power.

Takeaway: Egypt has less room if either Saudi funding or gas imports weaken.

What did the reported target lists include?

The source report described Saudi Arabia as the most exposed country in the U.S.-Iran war. Iran had explicitly listed Saudi refineries, data centers and undersea communications cables as its next targets should Washington strike again, according to that account. Riyadh is already struggling to keep Houthi missiles and drones off its energy infrastructure.

The New York Times reported on Thursday that Washington and Israel had drawn up a short, intensive bombing campaign for after November 3 and October 27.

The report placed the schedule after the November 3 date and Israel's October 27 election. Exercises are already running, and more U.S. forces are moving into the region. The target list covers nuclear sites, missile and drone installations, and energy infrastructure. Including energy infrastructure has drawn contention from those seeking