New Israel-Egypt pipeline in the works
Israeli Energy Minister Yuval Steinitz has announced that they are in talks to build a new underwater gas pipeline between Israel and Egypt. This is a result of efforts to transform the eastern Mediterranean into an energy export hub on Europe’s doorstep. Major offshore gas finds have transformed the eastern Mediterranean region into an energy hot-spot. This announcement follows the 2018 signing of a $15 billion deal to export Israeli gas to Egypt for over a decade. This was a landmark deal reached after years of litigation.
According to Steinitz, construction of the pipeline could begin in 2020. The pipeline will transport oil from Israel’s offshore Leviathan and Tamar fields to Egypt’s existing liquefied natural gas plants for processing and re-export. This new pipeline will exponentially increase the volume Israel is able to export to Egypt. The current pipeline is the EMG pipeline that connects southern Israel to Egypt’s Sinai peninsula. It has a maximum exporting capacity of 7 billion cubic meters per year.
The pipeline is not certain, however. “There’s no final decision yet, but there are talks,” Steinitz told Bloomberg in an interview in Cairo, where he took part in the first East Mediterranean Gas Forum. As a result of this news, Israeli gas stocks experienced a rise in worth. Shares of Delek climbed as much as 2 percent on the news. Ratio Oil Exploration 1992 LP, which owns 15 percent of Israel’s Leviathan, also gained as much as 2 percent in Tel Aviv trading. This announcement signifies a growing Egyptian openness toward cooperation with Israel. The two countries signed a peace deal in 1978, but the decades following saw rigidity between them.
“Today’s meeting is extremely important, as it delivers a very important message to the international community that we’re working together in order to exploit our natural resources,” Steinitz said.
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