Gas exports to Egypt to be delayed 3 months - report


The flow of gas from Israel to Egypt under a $15 billion deal had been planned to start this month but has been delayed due to a pipeline fault, "Bloomberg" reports.

The flow of gas from Israel to Egypt will be delayed by three months, "Bloomberg" reports. Minister of National Infrastructure, Energy, and Water Resources Yuval Steinitz recently said that the flow of gas from Israel to Egypt under a $15 billion deal would begin in March 2019.

Citing informed parties, Bloomberg said that the delay was due to a malfunction in the pipeline between Israel and Egypt. The East Mediterranean Gas company (EMG) originally built the pipeline to supply Egyptian gas to Israel, but it has been out of use for the past six years.

Egypt stopped supplying gas to Israel in 2012 due to a shortage of gas and because of repeated attacks on the pipeline in Sinai by Islamic terrorists. Egypt was involved in arbitration proceedings with several of EMG's owners, who threatened to delay the plans to export Israeli gas to Egypt.

Last week, Egyptian Oil Minister Tarek El-Molla said that Egypt expected to receive Israeli gas in mid-2019. Noble Energy, Delek Group (TASE: DLEKG), and the Egyptian partners discovered several missing or damaged parts in the pipeline.

On February 19, 2018, the gas partnerships in Israel, announced the signing of a contract to supply 64 BCM of natural gas to Egypt for $15 billion over 10 years. The agreement was signed by the owners of the Tamar and Leviathan gas fields and Egyptian group Dolphinus Holdings, based on a memorandum of understanding signed in October 2014.

Published by Globes, Israel business news - - on March 18, 2019

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

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