Israeli gas exports to Egypt receive government approval
Gas exports will be carried out from the Tamar and Leviathan gas reservoirs, offshore Israel, and are destined for both domestic Egyptian use and re-exportation of liquefied natural gas by Egypt.
By EYTAN HALONEnergy Minister Yuval Steinitz(photo credit: MINISTRY OF ENERGY)
Energy Minister Yuval Steinitz gave the green light on Monday to commence Israeli exports of natural gas to Egypt, ahead of an expected first flow between the countries on January 1, 2020.Approval was granted after completing necessary "professional procedures," including the receipt of authorization from the Antitrust Authority and a recommendation from the Committee for the Reduction of Concentration.Gas exports will be carried out from the Tamar and Leviathan gas reservoirs, offshore Israel, and are destined for both domestic Egyptian use and re-exportation of liquefied natural gas by Egypt. Gas supply to Egypt's Dolphinus Holdings will be carried out via the 90 km. subsea EMG Pipeline, connecting the southern Israel city of Ashkelon to the Egyptian network near El-Arish."A short time ago, I signed an approval for the export of natural gas from Israel to Egypt," said Steinitz."In doing so, Israel becomes - for the first time in its history - an energy exporter and an important partner in the regional energy market."The export of gas to Egypt, from the Leviathan and Tamar reservoirs, is the most significant economic cooperation between Israel and Egypt since the peace agreement was signed between the countries. This is a historic milestone for the State of Israel. The natural gas revolution makes us an energy superpower and will enable not only huge revenues for the country, but also a dramatic reduction in air pollution."The Energy Ministry's approval provides for the export of a total of 60 billion cubic meters (bcm) of natural gas from Leviathan, which is expected to commence operations later this month, and 25 bcm from Tamar over the next 15 years. The existing deal is valued at $15 billion."Obtaining regulatory approvals is a significant milestone toward exporting gas to Egypt, which will commence in approximately two weeks from now," said Yossi Abu, CEO of Delek Drilling, one of the partners in the Leviathan reservoir."Producing gas from Leviathan, which will start in the coming days, will strengthen Israel's regional standing, will reduce electricity prices and finally enable the withdrawal from the use of polluting coal."The deal to supply natural gas to Egypt follows a September 2016 agreement worth $10b. between Jordan’s National Electric Power Company Ltd. and the operators of the Leviathan gas field, to supply a gross quantity of 45 billion cu.m. of natural gas to Israel’s eastern neighbors, over a 15-year period. Exports to Jordan are also scheduled to commence on January 1.
