Nitzana Pipeline Setback Threatens Israel-Egypt Export Expansion

30 May 2025 Issue: 68 / 22 By: Peter Stevenson

Increasing the flow of Israeli gas to Egypt is important for both countries, but commercial disagreements over a key pipeline project risk capping volumes at 1.6bn cfd over the second half of next year.

A dispute over the planned 600mn cfd ‘Nitzana link’ aimed at boosting Israeli pipeline gas exports to Egypt threatens to cap future gas flows. The plan entails constructing a 65km pipeline connecting Israel’s southern gas network at Ramat Hovav to Egypt’s gas network on the eastern Sinai Peninsula and was initially announced in 2023. However, continued disagreement over volume allocations and cost burdens between the partners at US major Chevron’s Leviathan and Tamar fields and Israel’s Natural Gas Authority is pushing back the expected start-up date.

Israel had first hoped the pipeline would be operational this year but NewMed Energy – holder of 45.34% in Leviathan – suggests a 1H 2028 date in its Q1 results (MEES, 23 May). With neither side showing willingness to compromise, that date may yet prove optimistic. (CONTINUED - 1641 WORDS)