- Title: Israel starts exporting natural gas to Egypt under landmark deal
- Date: 16th January 2020
- Summary: CAIRO, EGYPT (JANUARY 15, 2020) (REUTERS) ISRAELI MINISTER OF ENERGY, YUVAL STEINITZ, SEATED DURING INTERVIEW (SOUNDBITE) (English) ISRAELI MINISTER OF ENERGY, YUVAL STEINITZ, SAYING: "This is the most significant economic cooperation between the two countries (Egypt and Israel). So far contracts of about $20 billion were already signed, and this is just the beginning of i
- Embargoed: 30th January 2020 13:12
- Keywords: Business Economics Egypt Europe Exports Gas Israel Natural gas Pipelines
- Location: CAIRO, EGYPT / MEDITERRANEAN SEA, ISRAEL
- City: CAIRO, EGYPT / MEDITERRANEAN SEA, ISRAEL
- Country: Egypt
- Reuters ID: LVA003BWFA639
- Aspect Ratio: 16:9
- Story Text: Israel began exporting natural gas to Egypt on Wednesday (January 15) under one of the most important deals to have been signed by the neighbours since they made peace four decades ago.
A private firm in Egypt, Dolphinus Holdings, will purchase 85 billion cubic meters (bcm) of gas, worth an estimated $19.5 billion, from Israel's Leviathan and Tamar offshore fields over 15 years.
Israeli Energy Minister Yuval Steinitz said the deal was "just the start" of cooperation with Egypt.
Yossi Abu, CEO of Israel's Delek Drilling, one of the partners in Leviathan and Tamar, said the arrangement "marks a new era in the Middle East energy sector".
Israel will initially export 200 million cubic feet of gas per day to Egypt, two Egyptian industry sources said. Gas from Leviathon will be supplied to Dolphinus at a rate of 2.1 bcm per year, rising to 4.7 bcm per year by the second half of 2022, according to Delek.
The gas is being supplied via a subsea pipeline connecting Israel and Egypt's Sinai peninsula, which Steinitz said had sufficient capacity for current volumes, though the option of building a second pipeline was being considered if demand from Egypt grew. Exports of Tamar gas to Dolphinus are expected to start later this year.
Israeli officials have called the export of gas to Egypt the most significant deal to emerge since the countries signed a historic peace treaty in 1979.
Egypt, which has boosted its own gas production in recent years, is hoping the Israeli gas deal will help it become a regional energy hub, with some of the gas expected to be re-exported to Europe through liquefied natural gas (LNG) plants.
(Production: Sherif Fahmy, Nadeen Ebrahim) - Copyright Holder: REUTERS
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