EMG, Israeli Electric are withdrawing arbitration cases against Egypt
EMG, IEC have begun withdrawing arbitration cases against Egypt: East Mediterranean Gas (EMG) and Israel Electric Corporation have officially begun proceedings to drop their international arbitration case against state energy companies EGPC and EGAS, according to Oil Ministry sources. The two cases would have seen Egypt pay a combined USD 1.988 mn in fines for failing to supply IEC with gas in 2012.
Key step in our energy hub transformation: The withdrawal of the claims are conditions of the USD 518 mn agreement Noble Energy and Delek — the operators of Israel’s Leviathan and Tamar gas fields — and their Egyptian partner East Gas signed last week. The transaction gives Nobel and Delek a 39% stake in EMG, paving the way for the gas field operators to export natural gas to Egypt under a USD 15 bn agreement signed in February with Alaa Arafa’s Dolphinus Holdings.
Advisers: Shahid Law Firm acted as sell-side legal counsel on the EMG transaction, while Alliance Law Firm had was on the buy-side.
The final tally on this FY’s natural gas imports: Egypt imported 17 shipments of liquefied natural gas (LNG) worth USD 500 mn in 1QFY2018-19, Oil Ministry spokesman Hamdi Abdelaziz tells Reuters. Imports in FY2017-18 amounted to USD 1.5 bn for 76 shipments, according to Abdelaziz. Egypt received its final shipment of imported LNG last week, marking the end of natural gas imports for the country, Oil Minister Tarek El Molla told the press over the weekend. El Molla had previously said Egypt is due to begin exports by January 2019, with exports expected to reach 400 mcf/d in early 2019, unnamed ministry sources said. The exports include 250 mcf/d Egypt will be supplying to Jordan as of the beginning of next year.