Oil and gas exploration and production company Noble Energy has completed its acquisition of a 39% interest in the Eastern Mediterranean Gas Company (EMG), which owns the EMG Pipeline.
The pipeline will transport natural gas into Egypt under the company’s gas supply agreements with Dolphinus Holdings. The investment totalled $185 million (€167.5 million), with Noble Energy’s effective interest in the pipeline being 10%.
“The closing of the EMG acquisition will support delivery of natural gas from the Tamar and Leviathan fields into Egypt, and represents a major milestone toward Egypt’s goal of becoming a regional energy hub,” commented J. Keith Elliott, senior vice-president of Noble Energy. “This acquisition, combined with our recently announced Dolphinus gas sales contracts offtake increases, provides further confidence in both the long-term export market and growing cash flows from our Eastern Mediterranean assets.”
The EMG pipeline is 90km long, located primarily offshore, and serves as a connection between the Israeli and Egyptian pipeline networks. Noble Energy intends to use the pipeline to accommodate its existing natural gas contracts from Leviathan and Tamar into Egypt, which are expected to begin in January 2020.
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