Back to the complete issue
Wednesday, 11 September 2019

Israeli gas will arrive in Egypt before the end of the year -El Molla

Egypt will begin receiving natural gas from Israel by the end of 2019, Oil Minister Tarek El Molla said in an interview at the World Energy Congress yesterday, according to Bloomberg. Israel will initially ship some 200 mn scf of gas per day, an amount that will increase to 500 mn scf/d at some point in 2020, he said. The import of Israeli gas comes as part of the landmark USD 15 bn agreement between Alaa Arafa-led Dolphinus Holdings, Delek Drilling, and Noble Energy, which was signed last year.

Multilateralism to blame for delays? El Molla said that the multilateral nature of the gas export arrangement was the main reason for the process taking longer than planned, but insisted that export plans remain on track, according to Reuters. Trial shipments were originally supposed to come in March, with commercial sales beginning by the end of June. Another potential spanner in the works surfaced in May when Thailand’s PPT Energy — a stakeholder in the Egypt-Israel EMG gas pipeline — filed a USD 1 bn lawsuit against Egypt for failing to meet gas deliveries after 2011.

The pieces are slowly moving into place: One of the final export hurdles was removed this week when the operator of the EMG pipeline signed an agreement to use a terminal owned by Israel’s Europe Asia Pipeline Company (EAPC) to export the gas.

Damietta LNG plant will not open this quarter: El Molla said that the Damietta LNG plant will open before the end of 2019, rather than during 3Q as recently claimed by an anonymous industry source. Damietta will begin exporting 500 mcf/d of LNG, before increasing to 700 mcf in 2020.

New oil and gas exploration tender coming in 2020: El Molla also said yesterday that the ministry is planning a new oil and gas exploration tender in the western Mediterranean in 1Q 2020. Another tender covering 8-12 concessions in the Western Desert, Gulf of Suez and the Eastern Desert is expected by the end of 2019.

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 HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; 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; Mashreq (tax ID: 204-898-862), the MENA region’s leading homegrown personal and digital bank; 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.