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Wednesday, 25 December 2019

Israeli gas exports to Egypt face possible delays, again

Israeli gas exports to Egypt face possible delays — again: The Israeli Environmental Protection Ministry has briefly delayed the start of production from the offshore giant Leviathan natural gas field until it receives more data from energy companies on the field’s greenhouse gas emissions, according to a ministry statement cited by Reuters. The field was due to go online yesterday, but the ministry told field operators Noble Energy and Delek Drilling that it still needs further validation that the emissions analysis is accurate. The companies said they remained “ready and prepared” to kick off production. Bloomberg also took note of the story.

Background: Egypt is due to start receiving Israeli gas under a landmark agreement signed by Alaa Arafa’s Dolphinus with Texas-based Noble Energy and Israel’s Delek Drilling in mid-January. News earlier this month that an Israeli court imposed a temporary injunction on the Leviathan field, which will produce most of the Egypt-bound natgas, threatened to delay the first shipments. The court injunction was lifted shortly after, and Israel’s Energy Ministry gave a final approval that would have seen the field start production earlier this week. Now, the environment ministry’s watchdog is threatening further delays.

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