Israel's cabinet today approved the plan to expand the scope of the natural gas supply infrastructure to Egypt. The approved plan includes an integrated infrastructure corridor including infrastructure facilities between Ashalim and Nitsana, which will increase the potential volume of natural gas exports to Egypt and a new pipeline between Ramat Hovav and Nitsana. The project and the program are being promoted by the Israel Natural Gas Lines Co. (TASE: INGL) with the support of the Ministry of National Infrastructures, Energy and Water Resources.
The new land pipeline section on the route between Ramat Hovav and the border with Egypt in the Nitsana area, and will serve as an infrastructure for exporting natural gas from Israel to Egypt, thus increasing options for exporting gas from Egypt to European countries seeking alternative natural gas sources in the wake of Russia's invasion of Ukraine.
The new pipeline between Ramat Hovav-Ashalim-Nitsana) will be 65 kilometers long and allow an extra six billion cubic meters (BCM) of natural gas to be exported to Egypt annually. The extra gas will bring NIS 200 million revenue to Israel Natural Gas Lines annually and hundreds of millions of shekels annually in revenues from royalties and taxes to the government.
Minister of National Infrastructures, Energy and Water Resources Israel Katz said, "The current decision increases the potential for cooperation between Israel and Egypt in the field of natural gas in preparation for decisions on exports that will have to be made soon. Cooperation between the countries will strengthen the economy, strengthen the well-being of the citizens of the State of Israel and strengthen regional stability - and I will continue to work for its expansion in the fields of natural gas, renewable energies, hydrogen and energy storage."
Published by Globes, Israel business news - en.globes.co.il - on May 8, 2023.
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