More Pipeline Problems For Israel-Egypt Gas Deal

Pipeline constraints in Israel’s natural gas network have the partners in a deal to sell Israeli gas to Egypt scrambling for a solution. MEES learns further pipeline issues lay in wait for them if that initial hurdle is eventually overcome.

The East Mediterranean Gas (EMG) pipeline link is currently not equipped to send 700mn cfd of gas (7bcm/y) from Ashkelon in Israel to Arish in Egypt, as part of a February gas sales agreement between the partners in Israel’s 10tcf Tamar and 22tcf Leviathan fields and Dolphinus, a private Egyptian consortium, MEES learns.

Texas-based Noble Energy and its key partner offshore Israel, Delek, are partnered in both fields and are also in the process of taking operatorship of the 26” EMG pipeline. Taking a 39% stake, along with Egypt’s state gas firm Egas, for $518mn, was considered by the firms a facilitator towards executing the gas sales deal with Dolphinus ( MEES, 28 September ). (CONTINUED - 1563 WORDS)