Israel: Pipeline Bottleneck Blunder Adds to Exports Headache

A bottleneck in Israel’s domestic grid may stymie attempts to pipe gas to Egypt from the 22tcf Leviathan field. Shipments from the Tamar field would be logistically less challenging, but volumes are currently maxed out.

Despite a commitment to begin exporting 350mn cfd (3.6 bcm/y) of gas to Egypt via the East Med Gas (EMG) pipeline by end-2019, a capacity constraint in the southern corridor of Israel’s INGL gas pipeline network could limit exports from Leviathan gas field to a maximum 2-3 bcm/y – a blow to the ambitions of US operator Noble (39.66%) and its Israeli partners Delek (45.34%) and Ratio (15%).

The gas pipeline in question boasts 8 bcm/y capacity but currently transports 5-6 bcm/y, leaving little capacity for gas exports to Egypt. The picture is even grimmer if one takes seriously the commitment to export another 350mn cfd to Egypt via the EMG line from the 10tcf Tamar field on an “interruptible” basis. (CONTINUED - 1809 WORDS)