Delek to sign new gas import agreements with Egypt?
Delek to sign new gas import agreements with Egypt? “We signed agreements with EMG to supply gas to Egypt, and we believe that additional agreements will be signed for local needs and liquefaction facilities in Egypt,” Delek Group controlling shareholder Yitzhak Tshuva said on Sunday at an investors’ conference in Tel Aviv, according to Globes. He did not elaborate on the details on potential agreements with Egypt. Tamar and Leviathan partners Delek Group and Noble Energy bought in September a 39% stake in the East Mediterranean Gas (EMG) pipeline with Egyptian partner East Gas, with an eye to sell Tamar and Leviathan gas to Egypt through EMG. "We are headed for very significant and special year. 2019 will be the year in which we produce gas from Leviathan," he added. “Early in the fourth quarter of 2019, we will begin pumping gas from Leviathan to the Israeli economy and the neighboring countries,” said Delek Drilling CEO Yossi Abu.
What about capacity issues on deliveries? The positive tone set by Tshuva and Abu did not mention concerns noted last week by Bloomberg that Israel does not have the pipeline capacity to send gas to Egypt when the Leviathan field comes online. While both Delek and Noble said they were working on it, no concrete solution has been presented as of yet.