After the removal of what was called a “major obstacle”, a deal was reached last week to export gas from Israel to Egypt, Arabi21.com has reported.
According to the Jerusalem Post, the Israeli fuel transit company Europe Asia Pipeline Co (EAPC) and East Mediterranean Gas Company (EMG) agreed to enable the use of EAPC infrastructure to export gas to Egypt.
Last year, Noble Energy, Delek Drilling and #Egyptian partner East Gas agreed a $518m. deal to acquire a 39% stake in EMG, which will also enable the firms to operate the long-dormant #pipeline. @eytanhalonhttps://t.co/YKT75uTCxZ
— The Jerusalem Post (@Jerusalem_Post) September 8, 2019
The process will use EAPC’s coastal terminal in the Israeli city of Ashkelon, which is needed to send the gas through EMG’s 90 kilometer-long underwater pipeline to connect the Israeli gas network to the Egyptian network near El-Arish. The connection was shut down following the ouster of former Egyptian President Hosni Mubarak in 2011.
A $15 billion deal to import Israeli gas to Egypt is delayed, facing security threats from Islamic State and legal obstacles https://t.co/bbBcKd65BY
— The Wall Street Journal (@WSJ) September 7, 2019
The deal is a major stage in the $15 billion decade-long deal signed in February 2018, which will see Noble Energy and Delek Drilling supply 64 billion cubic meters of natural gas to Egypt’s Dolphinus Holdings from the Tamar and Leviathan gas fields. Around seven billion cubic meters of natural gas are expected to be sold every year. Reports say that the Tamar field will be used in the first instance, with Leviathan coming on flow by the end of the year.
(Middle East Monitor, PC, Social Media)