$15 billion deal to export Israeli gas to Egypt

Reported by Reuters, a $15 billion (€13 billion) export deal has been set after companies residing from both Egypt and Israel purchased a 39% stake in an East Mediterranean Gas (EMG) pipeline.

The EMG stake was valued at $518 million (€446 million) and was purchased by Israel’s Delek Drilling, US-based Noble Energy and Egyptian East Gas Co.

Part of an export deal signed between Egypt and Israel in February of this year, the transaction will enable the export of 64 billion cubic meters of gas over 10 years from Israel’s Leviathan and Tamar deposits to Egypt.

Delek and Noble are both partners in the Israeli gas fields and will each pay $185 million (€159 million), whilst Egyptian East Gas Co will pay $148 million (€127 million).

The deal marks a major landmark in Egypt’s recent campaign within the global gas market. Earlier this month, Fluid Handling International reported that Egypt had signed an agreement with Cyprus to build a pipeline from the Aphrodite gas deposit.

Noble told Reuters that it expects to sell at least 350 million cubic meters of gas per day to Egyptian consumers.