This policy paper is a path-breaking analysis of the opportunities and risks associated with the possible export of natural gas from Israel and Cyprus to Egypt. His analysis establishes clearly that there will be significant shortfalls in gas supplies to the Egyptian market in the decade ahead despite major new investments, efforts at energy saving, and the reduction of subsidies. The author also points out that exports of liquefied natural gas (LNG) from Egypt to markets in Asia and Europe from the two under-utilized LNG plants in the country could greatly add to the commercial attractiveness of gas imports from Israel. He provides a detailed analysis of the technical and financial conditions that would need to be satisfied to make such imports commercially viable.