Delek looking to buy stakes in Egypt’s Damietta, Idku plants?
M&A WATCH- Delek looking to buy stakes in Egypt’s Damietta, Idku plants? Israel’s Delek Drilling is considering acquiring a stake in Egypt’s Idku or Damietta LNG facilities as part of its plans to “broaden its export footprint,” the company said in its annual report yesterday, according to Bloomberg. Delek is also looking into the possibility of “buying capacity at the plants rather than equity stakes, or enrolling their gas liquefaction services.” The move, in whatever form it takes, would be a key step in allowing the Israeli company to begin exporting gas beyond Egypt and Israel. Reuters also had the story.
Background: Delek Group and Noble Energy, which operate the Tamar and Leviathan gas fields, had bought last 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. Delek Group controlling shareholder Yitzhak Tshuva had also hinted in November that the company is looking to sign further agreements with Egypt “for local needs and liquefaction facilities.” In the time since, doubt has been raised over the capability of Israel’s domestic pipeline infrastructure to handle the quantity of gas agreed in last year’s USD 15 bn gas agreement, which sources said earlier this month has postponed the first shipment of Israeli gas to Egypt to mid-2019.