Jerusalem, Israel: Egypt will start getting natural gas from Israel in the beginning of the next year. A $15 billion deal has been signed in February 2018 and it is hopefully going to benefit both the countries.
From 2011 to 2014, there were terrorist attacks on Egypt’s natural gas pipelines to Jordan and Israel which were captured on security cameras.
Now the roles of importer and exporter have interchanged reversing the situation.
As per an anonymous source, gas export from Israel to Egypt will start in small quantities first and will slowly be increased to a climax in the beginning of 2020. However, this source refused to provide details of the contract.
As per a report, the contract requires Israel to export 64 billion cubic meters of natural gas from Leviathan and Tamar to the Dolphinus Holdings of Egypt over the coming ten years. Part of this East Mediterranean gas will be exported from the Tamar field which has approximately 238 billion cubic meters of gas, while the other part will go from Leviathan.
According to the Egyptian President Abdel Fattah el-Sisi, the contract will heighten the status of Egypt as an energy supplier in the region. After he got elected in May 2014, el-Sisi has paid most of his attention to recovering economy. The first of his major undertakings was the refurbishment and expansion of the Suez Canal, which includes a new city, fish farms, industrial areas, and other facilities.
El-Sisi also requested Israel to help Egypt root out terrorist groups in the Sinai. Israel in response to this request allowed Egypt to station its troops in the Sinai under the vigilance of the Israel Defense Forces.
Egypt has its own gas reserves but also faces an extremely heavy demand for domestic use and also for export as liquefied natural gas. The multinational companies operating in Egypt are looking forward to buying gas from Israel, liquefying the gas in Egyptian facilities and then sending the LNG over to Europe.
Noble Energy owns around 40% of Leviathan, where the gas is estimated to be around 622 billion cubic meters. Most of this is reserved for export. Delek Drilling has 45% share in Leviathan and 22% share in Tamar, the main source of Israel’s gas currently.