Egypt Israel Gas Agreement
Israel already supplies small amounts of gas to the Palestinians and Jordan, with whom Delek and Noble signed their first export agreement in 2016. Although the economic agreements reached so far with Israel have been controversial in Egypt, where support for the Palestinians is high, relations have continued to warm. The agreement is expected to strengthen regional relations and Egypt hopes that the new agreement will help to become a regional energy centre. Egypt will also allow Israel to export some of its natural gas to Europe via Egypt`s liquefied natural gas (LNG) facilities. The use of the disused EMG pipeline – which connects Ashkelon in southern Israel to al-Arish in Egypt`s northern Sinai – has always been an obvious transportation option as long as the Egyptian call for purchase was there; however, an agreement with the existing owners of the asset was made more difficult by ongoing claims against Cairo in connection with the initial export operations. In approving the midstream agreement with Noble and Delek on board, the Israeli Competition Authority determined that gas cannot be exported at a lower price than that charged to local consumers. On Sunday, Israel and Egypt confirmed that the pipeline agreement is expected to be concluded in the coming days. JERUSALEM (AP) – Israel announced Wednesday that it began exporting natural gas to Egypt in December as part of an agreement between the two countries. Beyond the economic benefits, the promise of gas seems to have helped bring Israel closer to Arab and other Mediterranean governments.
Steinitz was in Cairo for a regional gas forum with representatives of countries around the eastern Mediterranean. Energy Minister Yuval Steinitz said in a video posted on Twitter that it was “a moment of celebration when Israel is transforming itself into a regional energy power.” “Almost all of Israel`s gas needs are met from the [Tamar] already produced, so operators had to look outwards to put extra gas in phase 1 of the Leviathan,” Saraswat explains. With the long-planned $7 billion East Med gas pipeline project, there are few opportunities to bring Israeli and Cypriot gas to Italy, which remains on hold amid enormous political, economic and technical challenges. Israel began exporting natural gas to Egypt on Wednesday as part of a landmark 15-year agreement between the two countries. A private company in Egypt, Dolphinus Holdings, will buy 85 billion cubic meters (bcm) of gas over 15 years, worth an estimated $19.5 billion from israeli offshore fields in Leviathan and Tamar. Some company issue books require you to create a personal profile, and then activate your company account You can be logged in at the same time by any of the methods below. Now Egypt can help Israel reduce the cost by at least $2-3 billion by offering its existing LNG facilities. While Israel can significantly reduce total spending on infrastructure construction, Cairo can generate recurring revenues by leasing its existing LNG facilities in Tel Aviv. . “This measure will allow Israel to export some of its natural gas to the region through Egypt`s gas liquefaction facilities and promote both Egypt`s status as a regional gas hub,” he said.
Milestone brings Egypt closer to its goal of becoming an energy export hub to Europe. With the opening of the treaty, this is the first time that Egypt, which was the first Arab country to sign a peace pact with Israel in 1979, has imported gas from the country.