Back to the complete issue
Wednesday, 27 March 2019

Delek and its partners want to export even more gas to Egypt

Delek and its partners want to export even more gas to Egypt: Executives from Israel’s Delek Drilling is in talks to sell even more natural gas to Egypt beyond the USD 15 bn agreement signed last year with Alaa Arafa-led Dolphinus Holding, according to Bloomberg. Under the agreement, Delek and its partner Noble Energy should deliver 3.5 bcm from each of the Leviathan and Tamar gas fields for a combined total of 7 bcm. Delek, Noble, and Ratio Oil Exploration are now looking to supply up to 3 bcm per year above that to satisfy “an expected increase” in Egypt’s demand for gas. “The potential in the Egyptian market is endless. We’re going to clear up a lot of question marks in the coming months, once we start flowing gas through the [East Mediterranean Gas] pipeline,” CEO Yossi Abu said yesterday.

Biting off more than they can chew? Delek and its partners are still “scrambling” to sort out how they’re actually going to get all this gas into Egypt, Bloomberg notes. Their biggest current obstacle is “finding enough spare gas from the Tamar reservoir to test the pipe’s condition.” Earlier reports had suggested that the southern Israeli gas pipeline that is meant to carry gas from Tamar and Leviathan does not have the capacity for the contracted volumes. The status of the pipelines has pushed the timeline for Egypt to begin receiving the first shipments of Israeli gas to mid-2019, instead of this month. Egypt and Israel had begun talks in January over the construction of a new subsea pipeline that would enable Israeli gas to flow directly to Egypt’s Idku liquefaction plant, eliminating the need to expand Israel’s onshore infrastructure.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Etisalat Misr (tax ID: 235-071-579), the leading telecoms provider in Egypt; and Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt.