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Thursday, 22 September 2016

Israeli Knesset approves three-year gas import agreement with Dolphinus

Dolphinus Holdings has reportedly received the Israeli Knesset’s approval for a three-year agreement to import natural gas from Israel’s Tamar field, an unnamed government source told Al Borsa. The agreement is renewable for an additional two years, the source added. Furthermore, the newspaper claims that a delegation of senior Israeli energy officials visited Egypt on Tuesday to resume talks with their counterparts on importing Israeli gas to Egypt. Both assertions by the paper could not be confirmed, but if proven true, it could signal that the Ismail cabinet is softening its tone on an import agreement with Israel. As we noted previously, Prime Minister Sherif Ismail has said there will be no open discussion of gas imports from Israel until the USD 1.76 bn international arbitration award won by Israel Electric against state petroleum companies EGPC and EGAS and pipeline operator EMG is cleared. We will be keeping an eye on this.

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