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Page added on December 24, 2015
Israel approves natural gas exports to Egypt
Israel’s government has given the go ahead to begin exporting natural gas to Egypt, signalling a potential improvement in relations between two countries which have been at loggerheads over energy supplies.
Israel will be able to sell 5 billion cubic meters (bcm) of gas to Egypt in the coming seven years from the Tamar site off its Mediterranean coast, Energy Minister Yuval Steinitz said in a statement on Thursday.
“After years of delay and debate, we are starting to move forward and to position Israel as a regional natural gas power,” he said.
Israel, long an importer of gas, has seen its fortunes transformed by big gas discoveries such as the Tamar field.
Egypt had been selling gas to Israel under a 20-year agreement, but that collapsed in 2012 after months of attacks on the pipeline by militants in Egypt’s remote Sinai peninsula.
An international arbitrator this month said Egypt should pay nearly $2 billion in compensation from the halt in the gas supply, leading to tensions between the two neighbours.
Egypt said it would appeal the decision and freeze talks to import gas from Israel. It was unclear whether the Israeli government’s decision to approve exports meant the two countries have made progress in resolving their differences.
Earlier this year, the Tamar partners signed a seven-year deal for Egypt’s Dolphinus Holdings – a firm that represents non-governmental, industrial and commercial consumers – to buy at least $1.2 billion of natural gas in a deal that calls for a minimum of 5 bcm of gas to be sold in the first three years.
Tamar, with estimated reserves of 280 bcm, is owned by Texas-based Noble Energy as well as Delek Drilling and Avner Oil Exploration – two units of the Delek Group.
They have said the agreement to supply gas to Egypt still hinges on regulatory and other approvals.
The companies also control the much larger nearby Leviathan field, whose development was approved last week..
6 Comments on "Israel approves natural gas exports to Egypt"
makati1 on Thu, 24th Dec 2015 8:41 am
He said, she said, they said. No real approval or gas flow in the near future. More pimping by the mouthpiece of Wall Street? Looking for ‘investors” for Tamar? The energy wars continue to grow.
Truth Has A Liberal Bias on Thu, 24th Dec 2015 8:57 am
Too bad Egypt won’t be able to pay for it. I suppose KSA and UAE might pass the hat and pay for Egypt’s NAtGAs requirements but that’ll get old fast.
Plantagenet on Thu, 24th Dec 2015 11:27 am
The stupid Islamists kept blowing up the pipeline that used to send oil from Egypt to Israel. I wonder if they’ll now start blowing up the pipeline that brings NG into Egypt from Israel?
rockman on Thu, 24th Dec 2015 2:27 pm
mak – FYI: they don’ need no stinkin’ investors. lol. They just needed more buyers then the Israeli electric company they were already selling to. The field is developed: it began producing over 2 years ago.
Drilling of Tamar 1 began in November 2008. It was drilled to a depth 16,100′ at a cost of $92 million. The partners announced the discovery on January 17, 2009. In September 2011, Noble began production development. The field has proven reserves 7.1 trillion cubic feet of natural gas, while the adjoining Tamar South field has 810 billion cubic feet. First commercial gas delivery took place in April 2013.
makati1 on Thu, 24th Dec 2015 7:27 pm
Rockman, I’m still tied to the Wall Street mindset too much, I see. I rarely read any articles where some corporation isn’t pimping for investors, or some organization doesn’t have their hand out, or some book author is not selling his wares. It’s ALL about money.
Of course, you are correct. Without paying, profitable, customers, there will be no investors. Or not for long. That goes for all industries and is a sign of our decline. Happy Holidays!
rockman on Fri, 25th Dec 2015 9:21 am
mak – I’m sure there was more then enough hype when they were putting the deal together. Your timing was just a bit off. lol.