Delek weighs up buying Egyptian LNG plant stake

Yitzhak Tshuva Photo: Tamar Matsafi

Delek is mulling acquiring a stake in Shell's Idku facility or Union Fenosa's Damietta LNG facility, reports "Bloomberg."

Delek Group Ltd. (TASE: DLEKG) unit Delek Drilling LP (TASE: DEDR.L), controlled by Yitzhak Tshuva, is considering acquiring a stake in an Egyptian liquefied natural gas (LNG) plant, the company wrote in its 2018 financial statement, "Bloomberg" reports.

Buying a stake in either the Idku facility operated by Royal Dutch Shell Plc or Damietta facilities, or Damietta operated by Spain’s Union Fenosa SA, is one option for the Egyptian deal. Other possibilities include buying capacity at the plants rather than equity stakes, or employing their gas liquefaction services.

Last February, Delek and Noble Energy Inc. (NYSE: NBL) signed a $15 billion deal to sell natural gas to Egyptian company Dolphinus Holdings. But buying into one of the Egyptian LNG facilities would mark a new phase in Israel-Egypt relations with the two countries celebrating the 40th anniversary of their peace treaty this week.

A representative for Egypt’s Ministry of Petroleum didn’t immediately reply to a request for comment by "Bloomberg."

Published by Globes, Israel business news - en.globes.co.il - on March 24, 2019

© Copyright of Globes Publisher Itonut (1983) Ltd. 2019

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Yitzhak Tshuva Photo: Tamar Matsafi
Yitzhak Tshuva Photo: Tamar Matsafi
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