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News // Oil and gas worldwide

15 billion USD agreements signed for the sale of Israeli natural gas to Egypt

20 February 2018 , 12:54Neftegaz.RU659

Delek Drilling, subsidiary of Delek Group, announced the signing of two agreements for the export of gas to Egypt (GSPA) with the Egyptian Dolphinus company (Dolphinus Holdings Limited) for the supply of a total of around 64 BCM of natural gas from the Tamar and Leviathan reservoirs for a 10-year period, for approximately $15 billion.

Delek Drilling reported this on February 19, 2018.

 

The gas supply is expected to begin with conclusion of the supply infrastructure required for transmission of natural gas to Egypt and will continue until the earlier of the total contractual quantity set forth in the agreements (a total of 64 BCM), or until the end of 2030.

 

Various possibilities for transmission of the gas to Egypt are being examined, including use of the EMG gas pipe, and Delek Drilling and Noble intend to commerce negotiation with EMG for the use of the EMG pipeline to Egypt.

 

In addition, other possibilities are being examined, including the Jordanian-Israeli pipeline which connects the Israeli transmission system and the Jordanian transmission system (which is currently being built in accordance with the Leviathan-Jordan agreement), or via the Nitzana pipeline – a new natural gas pipe that will be built by INGL and will directly connect the Israeli transmission system to its Egyptian counterpart, in a similar format to that currently implemented between Israel and Jordan.

 

Yitzhak Tshuva, the controlling shareholder of Delek Group: “We are at an important milestone on the road to realizing our collective vision and dream of making Israel a significant exporter of gas to countries in the region. The agreement will strengthen the relationships between Israel and its neighbors and increase economic cooperation between them”.

 

Yossi Abu, CEO of Delek Drilling: “This is an historic day. The export deals establish Egypt’s status as a regional energy center which allows the supply of gas both to the Egyptian domestic market and for export, and allowing economic development of the Egyptian and the Israeli economies. With the signing of the agreements, the scope of the contracts signed for the supply of gas from the Leviathan reservoir is approaching the total production capacity under Phase 1A of the Leviathan’s development plan and securing the long-term sales volume from Tamar. Concurrently with the implementation of the transactions, we are continuing to promote additional agreements which will constitute the basis for the adoption of an FID for Phase 1B of Leviathan, which will increase the reservoir’s production capacity to around 21 BCM per year”. 

 

To read this news in Russian.

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