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Tuesday, 9 October 2018

First gas from Israel could begin flowing to Egypt by March

** #7 First gas from Israel could begin flowing to Egypt by March: Egypt could begin importing gas from Israel as early as March 2019 under a USD 15 bn agreement Delek Drilling and Noble Energy signed with Alaa Arafa’s Dolphinus Holding if the East Mediterranean Gas pipeline is “found to be in good condition,” East Gas CEO Mohammed Shoeib tells Bloomberg. Noble, Delek, and East Gas signed a USD 518 mn agreement last month to acquire a 39% stake in East Mediterranean Gas. The agreement grants the three companies access to EMG’s 90 km pipeline connecting Israel’s grid to Egypt’s.

Procedures to test the pipeline and reverse its flow are expected to take around three to four months. “We expect the pipeline is in good condition. We aim to reach the pipeline’s full capacity or maximum flow rate within three years,” said Shoeib. If all else fails, a separate East Gas-owned pipeline that runs through Jordan could be used “as a backup.” Egypt will initially import 100 mn scf/d in 1Q2019, before gradually rising to 700 mn scf/d. By the end of 2019, 350 mcf/d is expected to be pumped to Egypt from the gas fields, supplying around 64 bn cbm of gas over a 10-year period, Delek previously said.

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