A new agreement was reached between Israel and Egypt to deliver natural gas from the Leviathan and Tamar fields direct to Egypt. The beneficial deal represents a milestone reached between the two Middle Eastern neighbors. Noble Energy and some selected partners will acquire approximately 39% equity interest in Eastern Mediterranean Gas Company.
The $200 million-dollar agreement is still in the process of final closing, and is seeking final government approvals, pipeline operation reviews, and securing other technical conditions. The 90-kilometer pipeline connects the Israeli pipeline in Ashkelon to the Egyptian pipeline offshore, and is expected to supply 350 million cubic feet of gas to the Egyptian energy supply.
While there are still pieces of the deal to close, it’s a promising move forward towards resource sharing, growth and perhaps more neighborly relations between Egypt and Israel overall.
Senior Vice President of Noble Energy Offshore, J. Keith Elliot, stated that the “announcements mark significant steps forward in supplying natural gas from the world-class Tamar and Leviathan fields to regional customers through existing infrastructure. They also represent another major milestone toward Egypt’s goal to become a regional energy hub, providing access to both growing domestic markets and existing LNG export facilities.”