Amiram Barkat Israel's Minister of Energy Yuval Steinitz and Egypt's Minister of Petroleum Tarek El-Molla announced this morning that gas has begun flowing from Israel to Egypt. Israel's Minister of Energy described this as an important development, which will serve the economic interests of both countries. The announcement added that Israel would be able to export some of its natural gas to Europe via Egypt's liquefied natural gas (LNG) facilities and that this would promote Egypt's status as a regional gas hub.
This is also a historic milestone for Israel's gas developers who initiated contacts with the Egyptian after Australia's Woodside canceled its plans to invest in the Leviathan field in 2012. Talks with the Egyptian authorities were led over the years by Delek Drilling LP (TASE: DEDR.L) CEO Yossi Abu.
Steinitz and El-Molla will present the progress that has been achieved at a Middle East Gas Forum in Cairo later today. During the forum the Energy Ministers of Israel, Egypt, Italy, Greece, Cyprus, Jordan and the Palestinian Authority will approve the founding of a regional organization.
At the same time, the Israeli delegation led by Ministry of Energy director general Udi Adiri will work with its counterparts from Egypt, Italy, Greece, Cyprus, Jordan and the Palestinian Authority to formulate the constitute of the EMGF - Eastern Mediterranean Gas Forum. At the end of the meeting the ministers will initial a draft constitution - a major step in the formation of the organization.
Published by Globes, Israel business news - en.globes.co.il - on January 15, 2020
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