Such export deals were, in any event, held up by government disputes with those developing Israel's Leviathan field. But the deal to supply gas wasn't well received in Egypt - dealing with the "Zionist entity" is never popular. This gives Egypt an "out", where they can now supply their own needs. But Egypt may short-change itself if, as reported this morning, the gas is intended only for Egypt's use, meaning no exports. If that's the case, Egypt will earn no foreign currency, will not benefit from the "discipline of the market", and likely will just continue providing gas at subsidized prices to the local market.

An energy independent Egypt will make them less vulnerable to both negative Sunni and Shiite influences. Though Israel will have one less customer for gas, I see this as a positive occurrence.