Wednesday, 16 January, 2019

Israeli gas company signs $15b export deals with Egypt

Israel to Export Natural Gas to Egypt in $15 Billion Deal The lead partners in Israel's largest gas fields said they signed a $15 billion export deal with Egypt
Nellie Chapman | 20 February, 2018, 21:37

Yossi Abu, chief executive of Delek Drilling, said in an interview that the deal is the largest-ever export agreement for Israel's nascent natural gas industry.

Egypt had once sold gas to Israel, but the deal was terminated by Egypt's state-run gas company EGAS following the ouster of the country's dictator Hosni Mubarak in 2011.

Israeli Prime Minister Benjamin Netanyahu welcomed "the historic agreement" which "will bring billions to the country and will aid in the education, health and welfare of Israeli citizens".

Reports from Israel have revealed details of a $15 billion deal to export 64 billion cubic metres of natural gas over 10 years to Egypt, said on Monday. It's possible that the gas imported from Israel could be re-exported from Egypt if the country finds that it has meet its domestic energy needs, he said.

Meanwhile, Noble and Delek also announced that they had been trying to finalize a long-term export deal with a Royal Dutch Shell plant in Egypt.

Egyptian oil minister Tarek al-Molla said the "Egyptian government had not received any official request to import gas from Israel", speaking to private television channel DMC.

"International private companies will import gas from overseas in the framework of their own needs, and will liquefy and export them again", the official said, without elaborating.

Leviathan, located about 80 miles (130 km) west of Haifa, was discovered in December 2010 and is scheduled to start producing by the end of 2019. Egypt used to supply Israel with gas but the pipeline was sabotaged repeatedly by Islamist militants in the Sinai Desert.

The export agreements are conditional upon receipt of regulatory and government approvals in Israel and in Egypt.

As for transporting the gas, "The Sellers and the Buyer are evaluating various potential options for transporting the gas to Egypt including using the Pan Arabian pipeline via Jordan and/or entering of the Sellers into negotiations with EMG and all or part of its shareholders for the transportation of gas via the existing EMG pipeline to Egypt", the statement read.

Noble Energy has a almost 40 percent stake in the Leviathan field (discovered in 2010) and about a one-third stake in the Tamar field (discovered in 2009).

They are joined in Tamar by Isramco Negev, Tamar Petroleum - a spin-off of Delek - and two other smaller partners.