Egypt okays Tamar gas imports - report

Tamar

The natural gas will be sent through the existing Egypt-Israel gas pipeline, "Reuters" reports.

The Egyptian government today announced its intention of authorizing private companies to import natural gas through the existing infrastructure in the country, the Reuters news agency reports. The Egyptian announcement should delight the partners in the Tamar natural gas reservoir, who have signed a gas export contract with Egyptian company Dolphinus.

Under the terms of the contract, the Tamar partnership will supply a minimum of 5 BCM in the first three years of the agreement, with the gas being transferred from Israel to Egypt through the existing infrastructure in the reverse direction from the way the pipeline was constructed.

Demand for gas in Egypt is rising 9-10% annually. Egypt is therefore trying to find ways of increasing its gas supply, and also to prevent waste. On the supply side, Egypt has begun importing liquefied natural gas (LNG), and has also raised the price of gas for the local economy. Instead of a price of less than $3 per energy unit (mmbtu), Egypt is now allowing the gas production companies $3.50-6 per mmbtu (depending on how the drilling is done). In order to prevent the waste of gas, the subsidy for energy products has been reduced.

The Egyptian government has now decided to allow the private sector to sign gas import deals. The president of EGAS, the Egyptian government company, said, "The state has decided to allow private companies to import gas through the existing infrastructure," adding, "EGAS this week began to authorize private players to use the Egyptian gas transportation system"

It now appears that the Egyptian side, at least, has given a green light to the deal. The Tamar partnership has submitted a request to the government for approval of an export contract to Egypt, but no answer has been received yet from the state.

Published by Globes [online], Israel business news - www.globes-online.com - on May 21, 2015

© Copyright of Globes Publisher Itonut (1983) Ltd. 2015

Twitter Facebook Linkedin RSS Newsletters גלובס Israel Business Conference 2018